New Zealand will maintain its economic and fiscal strategies despite the volatility in global financial markets triggered by U.S. President Donald Trump’s tariff policies, Finance Minister Nicola Willis announced on Tuesday.
The global trade conflict escalated on Monday when President Trump threatened to impose higher tariffs on China, while the European Union proposed countermeasures, erasing trillions of dollars in stock market value. Trump’s tariffs, which include a 10% levy on New Zealand imports, are part of a broader strategy that has caused widespread uncertainty.
Despite the risk posed by Trump’s trade policies, Willis emphasized that New Zealand’s government has implemented measures to effectively navigate this period of global economic uncertainty.
“Though these impacts are unwelcome, we believe they will have a modest effect compared to the broader consequences faced by other nations,” Willis told reporters. “Our economy is resilient, and we are in a fortunate position to stick to our planned economic and fiscal course.”
The Finance Minister reiterated that the government remains committed to achieving a budget surplus by the end of the decade and plans to incorporate the economic effects of the tariffs into next month’s national budget.
The United States, New Zealand’s second-largest export market after China, accounted for about 12% of the nation’s total exports last year. Key exports to the U.S. include dairy, meat, and fruit—commodities that are among the most traded worldwide, offering New Zealand the opportunity to diversify its markets, Willis added.
While New Zealand’s economy has faced challenges, including a sluggish period of growth, the Reserve Bank of New Zealand has reduced interest rates by 175 basis points since August to stimulate the economy. A Reuters poll of 31 economists suggests a further 25 basis point cut in rates at the Reserve Bank’s upcoming meeting, with additional rate cuts anticipated in 2025 due to the impact of U.S. tariffs on the economy.
Related topics:
Malaysia to Lead ASEAN Response to US Tariffs
Japan’s Real Wages Fall for Second Month Amid Inflation and U.S. Tariffs
