New Zealand's Prime Minister Christopher Luxon has made his strongest condemnation yet of US President Donald Trump's tariffs, denouncing a shift away from agreed rules and the risk of a global trade war.
Trump’s wide-ranging "Liberation Day" tariffs, announced last week, have shocked world markets. They posted a third day of losses on Monday, as investors worried that steep trade barriers around the world's largest consumer market could lead to a recession. Trump administration officials say the President is following through on a promise to reverse decades of trade liberalisation he believes has undercut the US economy, Reuters reports.
Luxon delivered the prepared remarks to reporters, before heading into a caucus meeting at Parliament this morning, warning of the potential fallout from a "profound shift in the global economic landscape".
"We've all seen the immediate impact on KiwiSaver balances, but wider than that, it is hurting growth prospects at a time when the global economy needs certainty and confidence, not uncertainty."
Trump's tariff plan has sent markets tumbling, with losses comparable to the global financial crisis, the arrival of the Covid-19 pandemic and the 1987 Black Monday crash.
Speaking at the White House on Monday, Trump doubled-down and threatened China with an additional 50% tariff if it did not withdraw a countermeasure.
Luxon told reporters he and his government would be the "biggest advocates for free trade on the world stage".
"What actually is concerning me is the shift away from agreed rules and the risks of actually backsliding into a global trade war," Luxon said.
"A trade war is, frankly, in nobody's interest. It will slow global growth, it will hurt jobs and it will reduce the amount of money we have in our wallets."
Luxon also offered some reassurance to New Zealanders, stressing the country was well positioned with competitive farmers and exporters, as well a network of trade deals.
"We have a strong history of advocating for an open, rules-based trading system, and I will work with like-minded countries to promote free trade as a path to prosperity for New Zealanders and for those that we trade with," he said.
"Yes, we're entering choppy waters, but we step into that from a very strong base and, with that, I'd say that New Zealand's best days actually lie ahead of us."
- additional reporting by Reuters
