Tariffs: New Zealand says it won’t retaliate against the US tariff war, media fact check Donald Trump
The U.S. tariff announcement is part of a broader global tariff imposed by President Trump, mistakenly saying New Zealand imposes a 20% tariff on U.S. goods. McClair clarified that the average tariff rate for U.S. exports to New Zealand is 1.9%. The 10% tariff is expected to cost New Zealand exporters about $900 million.
The U.S. imposes tariffs under the Emergency Powers Act on the basis of the trade deficit. New Zealand economist John Ballingall’s sensory partner in New Zealand said the U.S. may have calculated a 20% figure based on New Zealand’s trade surplus, but separated by its exports.
“If you use our data, that will get you around 19.6%, so I think that’s where they get from 20%,” Ballingall said, adding: “Of course, this is not the tariff we have on our exports.”
McClay said New Zealand officials will work with the United States to clarify the correct tariff rates. McClair also mentioned that officials are working to confirm whether the 10% tariff is also included to increase the current tariff. “It seems like this is a blanket tariff, but we hope to clarify it quickly,” he said.
McClair stressed the potential impact of tariffs on inflation, demand and monetary interest rates. “Tariffs are “not good for trade” and may affect inflation, demand and interest rates in certain currencies,” he said. The minister confirmed the government’s commitment to supporting exporters and noted that they will work closely with them to browse the new tariff environment. He highlighted the existing confidence in the U.S. market opportunities in the New Zealand business community. McClay briefed his workforce rival Damien O’Connor’s response, highlighting the importance of bipartisan cooperation on the issue.
Foreign Secretary Winston Peters has put New Zealand’s relatively low tariff rates, a recent trip to the United States, suggesting that it helps achieve “the best results.” “The purpose of our mission has been achieved. Indeed, the position of the New Zealand company that is worried about worse is good compared to exporters in other countries,” he wrote.
Labor trade spokesman Damien O’Connor was disappointed that the government could not negotiate lower tariffs. “We will lose $900 million in exports, and it will be uncertain who will bear this cost, both for U.S. consumers and New Zealand exporters,” said O’Connor, who is concerned about the potential ripple effect on trading partners such as China and the impact on New Zealand exporters.
Act leader David Seymour expressed concern about tariff news and said the government was closely monitoring the situation. According to CNN fact checks, President Trump made several inaccurate claims when announcing global tariffs.
“Canada has more than 250% tariffs on some U.S. dairy products.”
Trump mistakenly claimed that even the smallest amount of dairy products in Canada ignores Canada’s massive quotas that allow US dairy products to be imposed without tariffs under the USMCA.
He said the first small milk carton exported to Canada faced “very low prices” but “then it reached 275%, 300%. Trump has repeatedly listed the $200 billion figure of the trade deficit with Canada, which he is still higher than the official figure.
Research shows that U.S. importers pay tariffs and the costs are largely borne by U.S. consumers. Trump also falsely claimed that China did not pay any tariffs on the former U.S. president and that inflation was the highest during Biden’s presidency, and that it barely existed in himself.
“U.S. importers, rather than foreign exporters like China, pay taxes, and after the study, found that Americans bear the vast majority of Trump’s first tariffs on China.”
“Since 1789, the United States has imposed tariffs on Chinese imports.”
While gasoline prices have dropped since returning to the office, the average national gas price on the day of his speech was higher than the day of the inauguration. “Gas is less than $3,” he said.
“In the last month of the Biden administration, inflation was 2.9% in December 2024.”
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