Too Soon to Consider Suing Over Tariffs, Says New Zealand Trade Minister

New Zealand's Trade Minister Todd McClay has taken a pragmatic stance regarding the recent 10% tariffs imposed by the United States under President Donald Trump. While maintaining that all options remain possible, McClay emphasizes that pursuing a legal challenge through the World Trade Organisation (WTO) is not an immediate priority.

Prominent lobbyists representing major New Zealand exporters urge the government to contemplate legal action, arguing that Trump's tariffs infringe upon international trade agreements established during the 1990s. Notably, Stephen Jacobi of the International Business Forum believes there is a 'strong case' that could be made against the current US tariff strategy.

The Uruguay Round of trade talks had granted New Zealand significant export quotas for products like beef, butter, and cheese, which are now imperiled by the new tariffs. Despite this, McClay wants further clarity from ongoing negotiations, particularly at upcoming APEC meetings, before considering any retaliatory measures.

The sentiment that a 10% floor for tariffs on New Zealand products could be a fixed point of negotiations underscores the complexity of the issue. McClay's recent communications correcting misconceptions about New Zealand's tariff position aim to ensure clarity both domestically and internationally.