The United States is not budging on its tariff rate for New Zealand even after New Zealand’s trade minister and top trade diplomat flew to the US to express concerns.

However, Trade Minister Todd McClay says “product-specific trade investigations” relating to steel, aluminium, pharmaceuticals and timber were discussed and both countries agreed to explore how consequences for their respective dairy industries could be mitigated.

Earlier this month, while attending the National Party conference, McClay announced he would be travelling to the US after President Donald Trump revealed an updated tariff regime that included 15% tariffs on New Zealand goods.

That was higher than the expected 10%. At the time, Prime Minister Christopher Luxon described the move as “blunt” and made late in the piece.

McClay then explained the tariff hike was due to New Zealand’s trade surplus with the US, meaning NZ sold more than it bought from the US.

Over the past week, McClay met with US Trade Representative Jamieson Greer and Secretary of Agriculture Brooke Rollins in Washington to “discuss concerns” over the tariffs, which McClay argued would disadvantage Kiwi exporters.

Trade Minister Todd McClay (right) met with US Trade Representative Jamieson Greer. Photo / Supplied
Trade Minister Todd McClay (right) met with US Trade Representative Jamieson Greer. Photo / Supplied

New Zealand’s top trade diplomat Vangelis Vitalis flew ahead of McClay to meet with US trade officials.

In a statement released this afternoon, McClay said Greer confirmed the reason for the tariff hike but appreciated New Zealand’s typically low tariffs against US goods.

“Two-way trade is well balanced and complementary, with New Zealand applying an average tariff rate of just 0.3% on US goods imports,” McClay said.

“At different times, each side has enjoyed a trade surplus, reflecting the dynamic nature of the trade relationship.”

McClay said trade investigations into specific products including steel and aluminium, pharmaceuticals and timber were also discussed, but he did not state whether any investigations would occur.

Also discussed was the “harm that heavily subsidised, trade-distorting practices of some countries are causing to the New Zealand and US dairy industries”.

McClay’s statement did not mention specific countries.

He said the trio had agreed to “explore ways to jointly combat these harmful practices and support our dairy farmers”.

McClay and Greer would likely continue discussions next month while attending the ASEAN Trade Ministers’ Meeting in Malaysia and in October at the APEC Leaders’ Summit in Korea.

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.