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 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 $2 billion 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. “This is a very important market for us, indeed it is our number one, despite the 15% tariffs, because the demand has been so strong in the US.”<\/p>\n
Guy said it seemed beef would revert back to a 1% tariff which was “business as usual” – but lamb was still subject to 15%.<\/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 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