While the USA is not imposing tariffs on New Zealand imports, trade measures against countries like Mexico, Canada, and China could still affect New Zealand’s economy, economists say.
Higher US inflation may slow interest rate cuts by the Federal Reserve, which in turn could put upward pressure on New Zealand’s mortgage rates, despite potential cuts to the Official Cash Rate.
A weaker New Zealand dollar may benefit exporters but could also drive up household costs for imported goods. Economists speaking to state media predict the full impact may not be felt until the second half of 2025, potentially delaying New Zealand’s “economic recovery”.
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