Today’s announcement of 10 percent tariffs for New Zealand goods entering the United States is disappointing for exporters and consumers alike, with the long-lasting impact on prices and inflation still unknown.

“The Government’s strategy of keeping its head down has not given New Zealand any advantage over our competitors,” Labour trade spokesperson Damien O’Connor said.

“It’s disappointing that the Government hasn’t been able to negotiate lower tariffs given the very low level of tariffs we impose on goods and services from the US.

“While the announcement has provided clarity on the percentage of tariffs, the impact on the US economy collectively including the impact on prices in the US market will take a long time to be fully realised.

“There’s going to be $900 million hit on our exports, and there is uncertainty over who will carry the cost of that, whether it will be US consumers or New Zealand exporters.

“We also have to consider how the ripple effect of tariffs on our trading partners such as China will affect prices back here.

“Decisions by our competitors to shift their goods to other markets may have further ramifications for NZ exporters.

“Trade Minister Todd McLay told New Zealanders that he didn’t expect New Zealand to be caught in tariffs, but he was proven wrong by today’s announcement,” Damien O’Connor said.

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