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\nTrade Minister Todd McClay.
\nPhoto: RNZ \/ Samuel Rillstone\n<\/p>\n
Tariffs have been removed from more than $2 billion worth of New Zealand’s exports to the United States, Trade Minister Todd McClay says.<\/p>\n
US president Donald Trump on Friday (US time) signed an executive order cancelling tariffs<\/a> on a wide range of food imports, including New Zealand beef and kiwifruit.<\/p>\n The new exemptions marked a sharp reversal, as Trump had long insisted his import duties were not fueling inflation for Americans.<\/p>\n But McClay said climbing prices and declining supply may have prompted the president to change tack.<\/p>\n “If you’re not getting as much beef coming in because of the tariff rate, there are shortages and prices will go up.”<\/p>\n The US buys New Zealand beef because it is high quality and the country does not produce enough of its own, said McClay.<\/p>\n The minister expected beef exports would return to the volume from before the tariffs were introduced.<\/p>\n He said about a quarter of New Zealand’s trade to the US had tariffs removed, but he wanted more products stripped of the taxes.<\/p>\n “I and the prime minister have consistently made the case that we don’t think it’s justified, that our trade is complementary and well-balanced.<\/p>\n “But in the case of the change, particularly for kiwifruit worth about $250 million a year and meat or beef exports about $2b a year for New Zealand, this is welcome news and we would hope there could be more over time.”<\/p>\n Meat Industry Association chief executive Nathan Guy said it was surprising but exciting news for farmers and processors.<\/p>\n “We’ve always thought these tariffs could indeed be inflationary for US consumers,” he said.<\/p>\n “This is a very important market for us, indeed it is our number one, despite the 15 percent tariffs, because the demand has been so strong in the US.”<\/p>\n Guy said it seemed beef would revert back to a 1 percent tariff which was “business as usual” – but lamb was still subject to 15 percent.<\/p>\n “We’ll keep raising that issue, we’ll work with the New Zealand Government and indeed ministers and officials and even the prime minister.”<\/p>\n He was pleased to see prime minister Christopher Luxon recently met<\/a> with Donald Trump, and believed New Zealand’s relationship with the US was “in good heart”.<\/p>\n “This is a positive step forward.”<\/p>\n The change would restore a level playing field with key competitors like Australia, which had avoided the extra tariffs, Guy said.<\/p>\n