Trade and Investment Minister Todd McClay says a recent U.S. Supreme Court ruling on the so-called “Liberation Day tariffs” could prove significant for New Zealand exporters, although uncertainty surrounding American trade policy is expected to continue.
McClay said New Zealand exports to the United States have remained steady despite a 15 percent tariff imposed by the US administration, with many businesses passing the increased costs on to consumers.
He reiterated that New Zealand considers the tariffs unjustified, noting the country applies an average tariff of just 0.3 percent on US imports, and confirmed officials at New Zealand’s embassy in Washington will seek further clarity while continuing to support exporters navigating ongoing trade uncertainty.
Image credit: Getty Images
Boycott USSSA imperialism.
This will come to an end.
Both.
Stooges like mcclay and fake money buying good peoples’ trade.
Nothing good about it from a end consumers perspective. This is essentially a tax on a tax unless US consumers receive commensurate tax breaks. Sounds to me more like the US government trying to refill its coffers at the long suffering tax payers expense. Its no different here in NZ with creative taxes cooked up all the time to mask incompetence, graft and waste.
New Zealand exports to the United States have remained steady despite a 15 percent tariff imposed by the US administration.
15% US tariff vs 15% NZ GST
Whats the problem here?
It will see prices of these goods increase to cover off the tariff, which will then be passed on to the US end consumer. Either that or exporters will end up making less which will see things like GST increase as the govt seeks to make up lost tax revenue.
Zippy, the issue stems from the US wrongly treating New Zealand’s 15% GST as a tariff.
In reality, GST is a broad consumption tax applied equally to both domestic and impoted goods, while tariffs are border taxes that only target foreign products to protect local industries.
Biiig difference!
New Zealand’s actual tariffs on US goods are very lov, averaging just 1.8%, and many items enter duty-free.
The US’ claim that NZ imposes a 20% trade barrier (base for their baseless ckaims), is a mischaracterization, based on combining GST with minor duties. This confusion leads to unfair reciprocal tariffs, like the 10–15% recently imposed on NZ exports, despite the two taxes serving entirely different economic purposes, nationally and inernationally.
But what do the governing individuals who deal with these numbers really comprehend…or want to iron out?
Actually, I content, that thej know damn well, but thej are on a pay-roll.