New Zealand intends to challenge the 15 per cent tariff rate imposed on its exports to the United States by the US government. Trade Minister Todd McClay stated that discussions with US officials would commence promptly to address the tariffs and seek revisions.
The tariff rate, initially indicated to be 10 per cent, was revised upwards following the release of new tariffs by the White House. US officials have stated that countries with a trade surplus with the US were assigned a minimum tariff of 15 per cent. McClay has disputed the notion that New Zealand has a significant trade surplus with the United States.
The US is New Zealand’s second-largest export market, with purchases amounting to $NZ9.3 billion ($8.5 billion) in the year leading up to June. Imports from the US totalled $NZ8.7 billion, resulting in a small trade surplus for New Zealand. McClay maintains that trade between the two countries is well-balanced.
The New Zealand dollar showed minimal reaction to the announcement, trading at US58.84¢ at 1.35pm in Wellington. The benchmark S&P/NZX-50 stock index experienced a decline, falling by 0.6 per cent.
