Donald Trump's 10% US tariff on NZ looks set to remain, officials clarifying - Nicola Willis (2025)

Finance Minister Nicola Willis says she understands the 10 percent tariff remains and diplomats are working "at pace" to clarify the situation.

"We have channels of communication between officials open", which was allowing officials between the US and New Zealand to speak with each other and "clarify our position", she said.

Since Donald Trump's announcement of tariffs on many countries a week ago, it has caused "a significant economic event on a global scale", Willis told Morning Report.

She said the imposition of the tariffs by the US was "extraordinary", leading to retaliatory action by others, and "big uncertainty in global markets", and "ongoing volatility and uncertainty".

When there was uncertainty it was very damaging to the global economy because traders and investors needed to know what the conditions were to do business, she said.

"And it's been very hard for anyone to know what that is this week."

With China being such a major trading partner for New Zealand and now the target of 125 percent tariffs from the US there would undoubtedly be repercussions for New Zealand.

"Events that occur there have impact for us and the same for the United States."

Having China and the US going "tit-for-tat" in a trade war was very destabilising for the world and "a real headwind for New Zealand".

Asked if New Zealand should separate itself more from the US, she praised the approach taken by successive governments which had involved lining up as much trade as possible with other countries.

"That's the right approach ..."

Willis said she was monitoring the bond market closely and while they had dropped sharply when the tariffs were announced they had risen a bit in recent days.

It was too soon to know where it was all going to settle to, she said.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Copyright © 2025, Radio New Zealand

• NZ shares surge as Trump tariff pause lifts markets

  10 Apr 2025

  

  Meanwhile, New Zealand officials are scrambling to figure out what the 90-day pause means, while China still faces a 125% tariff. Audio

  Donald Trump raises China tariffs to 125%, 90-day pause for other countries

• Luxon talks to world leaders as Trump pauses tariffs

  10 Apr 2025

  

  The Prime Minister says he will speak to world leaders today about working together to maintain free trade. Audio

  Christopher Luxon talks to world leaders as Donald Trump pauses tariffs

• Trump tells investors to 'buy' hours before tariff pause

  10 Apr 2025

  

  The president posted on his Truth Socal hours before his reversal.

  Donald Trump tells investors to 'buy' hours before tariff pause

• Magnificent Seven stocks to add more than $1 trillion in value after Trump pauses some tariffs

  10 Apr 2025

  

  US President Donald Trump's 90-day tariff pause is easing pressure on tech giants that had tumbled in recent sessions.

  Magnificent Seven stocks to add more than $1 trillion in value after Trump pauses some tariffs

• Trump raises China tariffs to 125% but authorises 90-day pause for others

  10 Apr 2025

  

  Earlier, the global trade escalated , with China now promising 84 percent tariffs on US goods.

  Trump raises China tariffs to 125% but authorises 90-day pause for others

Get the RNZ app

for ad-free news and current affairs