The global tariff threats by US President Donald Trump aside, New Zealand is optimistic about its trade relationship with the United States.
Speaking to “Squawk Box ASIA” from CNBC, New Zealand Finance Minister Nicolas Willis said that “New Zealand was distinguished that we have a very balanced and complementary trade relationship with the United States,” adding that it was “hope for following the positive trade relations” with it.
She noted that the United States imports meat and wine from the country, and that New Zealand imports “important goods and services from the United States.”
Trump said on Sunday that he will announce a 25 % global tariff on steel and aluminum imports in the United States, adding to previous threats of definitions on Canada and Mexico.
According to the Ministry of Foreign Affairs and Trade in New Zealand, the country, the country export 14.6 billion New Zealand (8.26 billion dollars) in goods and services to the United States-Australia exceeded to become the second largest export market in New Zealand-and imported $ 11.4 billion in New Zealand for 12 months ending in March 2024.
This represents a commercial balance of $ 3.5 billion and a total commercial value of $ 25.8 billion, and has not been modified for inflation.
Willis described the relationship between the two countries as “one working with both parties”, noting that New Zealand is also part of “Five Eyes” Inflience Alliance, which she said is “the basis for a very strong strategic relationship.”
“Five Eyes” is an intelligence alliance that includes Canada, the United States, the United Kingdom, Australia and New Zealand.
When asked if this means that the country would be able to avoid the tariffs of Trump, Willis said that “the decisions related to definitions are issues of the administration of the United States”, and New Zealand “will deal with the situation” if it arises.
She believes that the New Zealand dollar will provide some temporary warehouses if the customs tariff is implemented, saying that the minimum New Zealand dollar will help the country’s exporters by making exports more competitive.
Kiwi recently placed its lowest point in more than two years against the US dollar, as it was traded at 0.5515 to Greenback on February 3.
Willis also admitted that “the huge current account deficit” in the country, but added that the flexibility of the exchange rate “would allow a budget.”
