New Zealand was given no advance warning before US President Donald Trump signed his executive order<\/a> about 11am on Friday, August 1 (NZT).<\/p>\nSix minutes later, NZ\u2019s top trade diplomat, Vangelis Vitalis, fired off a Blackberry email marked: \u201cURGENT: US: Tariffs on NZ up to 15 per cent but others will stay on 10 per cent.\u201d<\/p>\n
Almost everything in the message is redacted, except his final sentence: \u201cThis Note is obviously rushed.\u201d<\/p>\n
MFAT deputy secretary Grahame Morton replied within minutes: \u201cThis is extremely disappointing news.\u201d<\/p>\n
A flurry of messages followed. One email noted the finance minister\u2019s office was \u201cclearly unaware\u201d of the development and needed advice on its possible impact.<\/p>\n
\u201cI know full well this is not an easy answer and requires deep analysis, but to the extent possible if the note coming over could talk to that, that would be helpful.\u201d<\/p>\n
By 11.52am, a senior public servant reported Prime Minister Christopher Luxon had been briefed while en route to Christchurch for the National Party conference that weekend.<\/p>\n
The staffer requested \u201chard data\u201d on the extra costs of the tariff and New Zealand\u2019s surplus\/deficit with the United States for the past 5-10 years.<\/p>\n
\u201cWe are going to need talking points pronto.\u201d<\/p>\n
The message noted Luxon\u2019s suggested public response, including the line: \u201cWe\u2019re incredibly disappointed: we see no reason for NZ to have less than baseline and we\u2019d been led to believe we would be.\u201d<\/p>\n
An email later that afternoon thanked MFAT officials for their work on \u201cwhat has been a hectic day\u201d.<\/p>\n
Diplomats in overdrive<\/p>\n
MFAT officials moved swiftly to convey the country\u2019s \u201cserious concern and disappointment\u201d, formally calling in the US acting head of mission \u201cto register New Zealand\u2019s dismay\u201d.<\/p>\n
New Zealand\u2019s embassy in Washington also went into overdrive, contacting senior figures across the US trade representative\u2019s office, the Departments of Commerce and State and the National Security Council to raise \u201cdeep concern\u201d.<\/p>\n
\u201cWe registered our surprise and extreme disappointment at the decision,\u201d an update noted.<\/p>\n
A formal situation report noted the team had \u201cpressed hard\u201d to secure McClay a one-on-one \u201curgent call\u201d with US counterpart Jamieson Greer \u2013 which took place the following morning.<\/p>\n
Briefing notes encouraged McClay to register \u201cstrong disappointment\u201d at the \u201cunwelcome surprise\u201d, noting the tariff hike did not befit the relationship of a close friend and strategic partner.<\/p>\n
The stated goal of the call was to urge the White House to reverse the decision or at least pause its August 7 implementation date.<\/p>\n
The document referenced an early proposal for McClay to fly to the US within the week, although he ultimately visited about three weeks later.<\/p>\n
However, Vitalis was dispatched almost immediately, leaving New Zealand on August 4 for three days, lobbying officials on the ground.<\/p>\n
\u201cI am totally realistic about what [meetings] we can secure given the short notice,\u201d Vitalis wrote in his departing email. \u201cWill take what I can get.\u201d<\/p>\n
An MFAT briefing paper noted Foreign Affairs Minister Winston Peters had also spoken with the US acting head of mission in an \u201cunplanned meeting\u201d at Wellington airport.<\/p>\n
Can it be fixed?<\/p>\n
Despite their advocacy for rolling back the additional tariffs, officials also showed a degree of realism about their chances.<\/p>\n
They concluded the \u201csingle factor\u201d for the higher rate was that New Zealand exported more to the US than it imported.<\/p>\n
\u201cMarket access issues or any perceived political divergences were not part of what was a simple surplus\/deficit equation.\u201d<\/p>\n
Washington-based staff warned that the only way to reduce the tariff would be to address that deficit, perhaps by making major purchases, like aircraft, from US suppliers.<\/p>\n
\u201cAny change to the EO [Executive Order] will only be possible with a decision by the President,\u201d one document said.<\/p>\n
On the afternoon of the announcement, both McClay and Economic Growth Minister Nicola Willis held a media conference at Wellington airport.<\/p>\n
Both ministers conveyed their disappointment, but McClay told reporters the Government had not been blindsided by the news.<\/p>\n
\u201cThe announcement today is not surprising,\u201d he said. \u201cThere have been signals out of the US that there was likely to be a change [and] that New Zealand could be impacted by that.\u201d<\/p>\n
In a new statement to RNZ this week, a spokesperson for McClay reiterated that the \u201cadditional changes were not surprising\u201d, given Trump\u2019s campaign promises and speculation about tariff changes at the time.<\/p>\n
However, McClay\u2019s office said the higher rate was unwelcome and disappointing, particularly given New Zealand\u2019s \u201cextremely small surplus\u201d compared to overall trade.<\/p>\n
– RNZ<\/p>\n
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