Dirty Pool!
OPINION: President Trump's tariff wars have torpedoed the US grain belt's biggest market, China, sending many US family farms to the wall.
The BBC quotes Carsten Brzeski, an analyst with investment bank ING, as saying there is now a higher risk that the US' trading partners would retaliate and that there is a risk of a fully-fledged tariff war breaking out; views no doubt shared by many others around the world, including NZ.
While we may be a small country in population terms, we are a big exporter of primary products, and the return of the chaos and uncertainty must surely be testing the skill, resilience and agility of our trade officials and exporters.
Maybe by the time you read this there is some clarification of what level of tariff Trump will impose on us. Then again, maybe not, because NZ is hardly at the top of the list in the Trump administration.
NZ has been careful to appease Trump, and Prime Minister Christopher Luxon, Foreign Affairs Minister Winston Peters and Trade Minister Todd McClay have chosen their words carefully when responding to previous unpalatable pronouncements by the US leader.
But one senses that other countries are starting to lose patience with Trump's knee jerk and impetuous reactions and that 'peace in our time' may be replaced by a world trade war.
Thid would be disastrous for us because, even if we are not directly affected, we may get caught in the crossfire, which could be just as damaging.
Read More:
- Trump Tariff Sparks New Uncertainty for NZ Exports
- Global Trade Uncertainty 'Likely To Remain'
- NZ meat industry seeks removal of US 15% lamb tariff
The saving grace for NZ is that it has worked hard and successfully to obtain free trade agreements with other major trading partners which offers exporters certainty.
What beggars belief at this time is why Winston is opposed to the India/NZ FTA which, even if it's not in his eyes absolutely perfect, is surely a means of future proofing out primary export economy.
