Trade Minister invited to US as tariff tensions tighten

Saturday, 2 August 2025

Trade Minister Todd McClay has been invited to the US after speaking to his counterpart, US trade representative Jamieson Greer on Saturday morning to register New Zealand’s “unhappiness” with heightened US tariffs, Prime Minister Christopher Luxon said.

McClay’s top trade diplomat is also heading to the US early next week, following the White House delivering unwelcome news on Friday with hiked export tariffs on New Zealand to 15%.

Luxon confirmed McClay spoke to “his ministerial counterparts [Saturday] morning and registered our unhappiness with the tariff increase from 10, to 15%.

“What was agreed is that we will send our top trade diplomat to Washington to continue conversations, and very importantly, the Trade Secretary Greer invited McClay up there in the next few weeks to further those conversations.

Luxon called Friday’s moves by the US “a blunt and rather late decision made around saying, countries that actually sell more stuff to the US than buy from the US, that have a surplus, have 15% [tariff].

“That includes countries like New Zealand, Japan, Korea.

“Countries that actually buy more from the US and sell less to the US, that have a deficit situation, like the UK, like Australia, will pay 10%.

Luxon said while “we may disagree with that approach, which we do, we think tariffs are bad for the global economy, but that's why we'll have this engagement by having our top trade diplomat there”.

This was revealed at the National Party’s conference on Saturday, opened by Luxon who attempted to break through “noise and uncertainty” and push his message of economic delivery to delegates.

He acknowledged that global conditions were “challenging”.

“Yesterday’s latest update from the US is a fresh reminder of how life as a small, trading nation like New Zealand is very different today than it was in recent years,” Luxon said.

“We can’t just batten down the hatches and hope for the best.”