Perspective with Heather du Plessis-Allan: Was our government too relaxed about the tariffs?

So, was our government too relaxed about the tariffs then?  

Cause this is a shock today – isn't it? To find out that we’ve just been bumped up to 15% while Australia and dozens of other countries have stayed on 10%. 

Now, it seems to be related, most likely, to our balance of trade and that the US has a trade deficit with us. So we get 15%, but then a trade surplus with Australia, so they get 10%. So perhaps it was inevitable and unavoidable, as long as the balance of trade sat like that. 

But then, on the other hand, Australia did kind of lock that in as well. They lifted their ban on US beef imports while we did nothing. Should we have done something similar Because if there's one thing that we know about Donald Trump, it's that he's a trader. 

South Korea had their tariff dropped from 25% to 15% by promising to buy $100 million worth of LNG. Sir Keir Starmer sucked up to Trump with a letter from King Charles.  

Now we don’t actually know what our diplomats were doing, because they were fairly guarded about it. But the vibe that we kept getting from ministers and officials every time we asked about it was, ‘not a lot going on, we’ll see how this goes, we’re on 10%, we’re no worse than anyone else’ 

That’s the trouble, though. We are now worse than other people. We export beef to the US, Australia exports beef to the US. Their beef now gets 10%, ours gets 15%. 

Now, we can argue about whether US consumers are really going to switch up their $11.50 New Zealand steak if the Aussie steak is only 50 cents cheaper. I mean, what's really the difference between $11.50 and $11? But I chose a butter last night because it was $1 cheaper than the other butter, so maybe they will, which brings me to the question that I asked at the start of this. 

Were we too relaxed? 

Because we definitely and quite deliberately opted for Winston's head below the parapet approach. But maybe what we should have done was opted for the same approach that Albanese and Starmer took, which is to suck up instead. Given where we are and where they are - both their countries are now on 10% and we're sitting on 15%. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Heather du for Seel. So was our government too relaxed
about the tariffs then? Because this is a shock today,
isn't it to find out that we've just been bumped
up to fifteen percent while Australia and dozens and dozens
and dozens and dozens of other countries have stayed on
ten percent. Now it seems to be directly related, most
likely to our balance of trade, and that the US
has a trade deficit with US, so we get fifteen percent,

(00:22):
but then a trade surplus with Australia so they get
ten percent. So perhaps it was inevitable and unavoidable as
long as the balance of trade sat like that. But
then on the other hand, Australia did kind of lock
that in as well. A they went out of their
way they lifted their ban on US beef imports, while
we did nothing. Should we have done something similar, because
if there's one thing that we know about Donald trumpet

(00:43):
said he's a trader. South Korea had their tariff drop
from twenty five to fifteen percent by promising to buy
one hundred million dollars worth of all ng Sir Kia
Stamus sucked up to Trump with a letter from King Charles. Now,
we don't actually know we did nothing like that. By
the way, we don't actually know what our diplomats were
doing because they were fairly guarded about it. But the

(01:04):
vibe that we kept getting from ministers and officials every
time we asked about it was, look, not a lot
going on. We're just waiting to see how this goes.
We're on ten percent. We're no worse than anybody else.
That's the trouble, though we are now worse than other people.
We export beef to the US. Australia exports beef to
the US. They're beef now cops ten percent, our beef
cops fifteen percent. Now we can argue about where the

(01:26):
US consumers are really going to switch up there? Eleven
dollar fifty New New Zealand steak if the Aussie steak
is only fifty cents cheaper. I mean, what's really the
difference between eleven fifty and eleven but I chose a
butter last night because it was a dollar cheaper than
the other butter, So maybe they will, Which brings me
to the question that I asked at the start of this,
were we too relax because we definitely and quite deliberately

(01:47):
opted for Winston's head below the parapet approach. But maybe
what we should have done was opted for the same
approach at Albanesi and Starmatok, which is to suck up instead,
given that look where we are and they are. Both
their countries are now on ten percent weeks, sitting on fifteen.
For more from Hither Duplessy Allen Drive listen live to
news talks. It'd be from four pm weekdays, or follow

(02:08):
the podcast on iHeartRadio.