Mr Wheeler says his protectionist “America first” trade policies could damage global trade and hit New Zealand hard.
The world is still waiting to see what trade barriers Trump is going to put up.
“For too long, we’ve watched our middle class shrink as we’ve exported our jobs and wealth to foreign countries,” Trump said.
Stark warning from Reserve Bank about the risks to our standard of living from the Donald Trump presidency.
Source: 1 NEWS
But if a leaked chat with the man who’s now his Commerce Secretary is anything to go by, those barriers could be broad and tough.
Trump said: “Ten per cent tariff or tax to do business in the United States. For everyone. China, Everyone.”
For New Zealand’s multi-billion dollar meat exports to America, that would hurt.
“The talk is obviously concerning and we are monitoring it closely. I think it’s important to understand though that a lot of the talk is preliminary,” said Sam McIvor, Beef and Lamb NZ chief executive.
We would be hard hit by a downturn in the global economy.”
Reserve Bank Governor Graeme Wheeler
But it’s not just exporters worried about new US trade barriers. In an invite-only speech Reserve Bank of New Zealand Governor Graeme Wheeler has warned about President Trump’s protectionist “America first” policies sparking retaliation and hurting global growth.
And the governor goes on to say: “New Zealand would not fare well in such circumstances. Even if our exports of goods and services to the US – currently over $8 billion – were not directly subject to higher tariffs we would be hard hit by a downturn in the global economy.”
Prime Minister Bill English believes open trade will prevail.
“If the US becomes a bit more protectionist then we will work with the other economies more closely. In the long run though we believe that the logic of open trade will prevail in the US,” he said.
US-based New Zealand trade representative Leon Grice has some advice on what Kiwi exporters should so in the short term.
“Keep really close to understanding what’s going on. Build relationships with your customers and make sure they are advocating,” said Mr Grice, the NZ-US Council chairman.
Mr Grice says there’s still time with President Trump not expected to finalise his trade agenda for months.
-TVNZ
