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I'm Chelsea Daniels and this is the Front Page, a daily podcast presented by The New Zealand Herald. Donald J. Trump will become the forty seventh president of the United States of America.
This will truly be the Golden Age of America.
That's what we have done.
Democrat Kamala Harris called the former president to congratulate him and offer their support for a peaceful transition of power.
A fundamental principle of American democracy is that when we lose an election, we accept the results.
Trump won't take up office until January twenty next year, and there are a few things that will happen between now and then. He faces sentencing for his felony conviction for a start that's put down for November twenty six. A judge, though, could decide to throw it out before then. There are then some formalities like appointing some four thousand
political positions in a new administration. And it'll be next year when the idea of tariffs will come to the fore, but it's something the rest of the world is already anticipating. On the campaign trial, Trump promised anywhere from ten to twenty percent tariffs on imports. So what does that mean for New Zealand exporters, especially given the US is one of our biggest trading partners. Today on the front page, Beef and Lamb and Z chair Kate Ackland is with
us to discuss. But first we speak to nzed US Council Executive Director Fiona Cooper about our blossoming relationship with the United States and why we should probably all take a deep breath. First off, Fiona, what was your initial reaction to the US election result.
Well, it's been a big build up and it was quite dramatic it. You know, we were watching all the polling of the polls and it became a very strong result for Trump. We went sure where we're even going to get a result on the night, So I guess that's one good thing is that there's a clear outcome and hopefully that paves the way for, you know, a smooth transition of power.
What's our relationship with the United States like.
Well, this is the very good thing is that we have an excellent relationship. It's been growing. You know, it's strong in terms of trade and it's strong right across the board. And New Zealand worked very well with President Trump's first administration, our Foreign Minister Winston Peters, he had strong relationships with his counterparts and he was very engaged
with them. And in fact, I certainly am delighted to see that the Prime Minister and Foreign Minister Peter's were quick to welcome the result last night and congratulate President Trump on his victory. I think that's good. So, you know, New Zealand's not starting from scratch. We have worked with Trump before and we look forward to working with them again.
Well, the New Zealand US trade relationship topped twenty seven point five billion in twenty twenty three. That's no small feet, hey, And it's getting bigger and bigger every year, isn't it.
Certainly it's now our second largest export market. It's valuable, it's growing, and that's a really good news story because New Zealand companies who export to the United States, they are well known for having high quality, innovative products that United States consumers want and that US businesses use in their manufacturing. So it's a really good news story. We'd like to see that continue and we look forward to sharing that story with the new administration.
When it comes to tariffs, though, that's the thing that has been a stickler for basically every country in the world. When looking at the results and looking at this election, we actually don't know anything about them really yet, do we No.
You know, there's not room for a lot of nuance in election campaigns, so all we've seen is very high level talk about imposing a universal tariff. But we don't have any details, and I would caution against speculating about the tariff policy until it's more fully formed. Trump won't be sworn in until the twentieth of January, so we're not going to find out the detail until after that. But the policy details do matter, and we'll be looking at it very closely once it's known. You know, the
devil will be in the details. It's clear there will be implications for New Zealand, and it's something that we're really focused on.
I noticed last month in an interview at the Economic Club of Chicago, Trump said, and I quote to me, the most beautiful word in the dictionary is tariff. It needs a public relations FIM.
We're going to.
Bring the companies back. We're going to lower taxes so further for companies that are going to make their product in the USA, we're going to protect those companies with strong tariffs. To me, the most beautiful word in the dictionary is tariff, and it's my favorite word.
What did you make of that statement.
Well, I think New Zealand's trade policies has starts from quite a different angle. New Zealand has spent many years trying to remove tariffs. So that's his perspective, and that's a perspective that he's bringing. We have a different view, and we will certainly be reminding him of the value that New Zealand exports add to the United States market.
Is there any possibility that New Zealand, given our notoriously good relationship with the US, could become exempt of a sweep of tariffs.
Well, we just don't know. We just don't know, and it's probably not useful to speculate. I mean, we're in the same boat as all of the United States trading partners. You know, this is something that's going to affect everybody, and it's going to be top of mind for all the countries that partner with the United States. So I'm sure that New Zealand companies are thinking about what that possible impacts could be, But none of us can make an informed judgment about that until we see the detail.
Thanks for joining us for the owner. New Zealand has some of the best beef and lamb in the world, and it's not just us saying that the US is our biggest customer of beef products, bringing in one point seven billion dollars in the year to May. Beef and lamb and Z chair Kate Ackland is with us to discuss what tariffs could mean for this industry. So, Kate, first off, what was your initial reaction to the US election result?
Well, Lewis, you know, it's a really important market for US. It's the largest market for beef and for lamb, so of course we were watching the results pretty closely.
On the campaign trial I noticed Donald Trump promised either a ten or twenty percent tariff on all US imports, as well as a sixty percent levy on Chinese made products. Now, can you explain to us what that actually means?
Well, you know, the president that made a lot of comments during campaign travel what that actually means in practice? That comes twenty to January when he's inaugurated. That remains fifteen. What we do know is that we've got really strong relationships with the US both across the sector but also with customers. And there's a really strong demand shrubber because our products are quite complimentary rather than a substitute for American beef and lamb. So these sects will stand up
in really good stead going forward. But you know, essentially it's a wait and see.
Yeah, I know, economists worldwide have warned that these tariff plans could push the US import duty rates back up to nineteen thirties era levels. What does that mean?
I think essentially New Zealand no extra confliments. You know, the lean beef that goes into things like McDonald's Bergers for example, actually complements the US production. So you know, any measures against New Zealand farmers will potentially impact US farmers as well. So now as I say that, it's very much a latency approach. Beef and lamb is a US or Washington, DC based trade relationship manager, so you through him, we're able to keep a really close eye on those issues as they arise.
Right, So he's going to be pretty busy over the next few months and of course next year as well.
Hey, yes he is, So you know we're keeping a really close eye through the US Trade and Relationship Manager, but also really close contact with New Zealand government officials over the next few months, just as we try and see some certainty.
So the figures from STATS and Z show that in May a rise in exports was led by an increase in exports to the United States. It reached a billion dollars for the first time. Now the US is our second biggest export market, with an annual value of eight point eight billion for the year ending May twenty twenty four,
behind only China seventeen point nine billion. In the year end of June, I noticed that NZ exported nearly two point five billion dollars of meat and edible offal to the US, which included nearly one point six billion alone of frozen beef. What could these kinds of tariffs anywhere from ten to twenty percent. What would that mean for New Zealand exports and especially New Zealand beef.
Well, there's no doubt that the US is actually our largest market for red meat, for both beef and man. It's a really important market. Eighty five percent of what we export to the US is lean meat, and that's next the fatter US product ground beach. So it's really key ingredients in Hamburger, so there's really strong demand currently
in New Zealand. It's got preferential access into the US through our WTY of country specific terraf front quota, and that makes us really competitive in the market in terms of what measures could be taken. As I said, it's worth fighting to see. We're keeping it really close on it, but I think it's too early to speculate.
We have got to wait till the twentieth of January next year. Also, we have a very very strong case to make ourselves an exception because of the thinness of our market, the fact that we pay first world waged when first world conditions, and so we're not an exploit out of the country that you could bring those sorts of tariffs against without having evidence. And so in our case we're not overly confident, but we've got ourselves ready.
In terms of what a tariff is, it's kind of like a levey or a duty fee to be able to export our meat or produce into the US. Have I got that right? Yes, you do. So.
Under our WCO quoture, we currently pay a lower tariff than a lot of other countries. So we are export currently to attract ter it's just where that might go in the future. We do it not and so it's very much even as relationships strong.
How devastating could a tariff like that be on our beef industry or would you just need to change tax and focus on another country and build that relationship up.
Look, I mean New zeal One ridmate seats that we export to one hundred markets around the world, and you know, political dynamics change in those markets all the time. So we're really well experienced in dealing with the ambigulity and building strong relationships. But the advantage we have is we have really strong relationships in the US already is really strong demand for our product, so it's just going to be over the coming month just building on those relationships.
Are there any other markets in the world that you would want a stronger relationship with?
Well, Novelle has a great advantage in how well diversified our trade is. The US, says I said, is currently our biggest market. China is another big market, but various or successive governments have done a really great job of nego sharing some good trade guild So we've just seen the GCC come through in the last week. It's not a huge market for us, but it's a really good, strong, growing mark, so market diverisfication strategy as a company I think fits us really well.
Yeah, and we've got to have some of the best beef in the world here.
Hey, we absolutely have some of the best beef in the world and that growing recognition for grass fed beef is something that we're really pushing and trying to capitalize on.
Thanks for joining us, Kate. That's it for this episode of The Front Page. You can read more about today's stories and extensive news coverage at enzherld dot co dot nz. The Front Page is produced by Ethan Siles with sound engineer Patti Fox. I'm Chelsea Daniels. Subscribe to The Front Page on iHeartRadio or wherever you get your podcasts, and tune in on Monday for another look behind the headlines.