1 00:00:00,000 --> 00:00:02,679 Speaker 1: It looks like the US President capitulated over the weekend. 2 00:00:02,720 --> 00:00:05,840 Speaker 1: Executive order got signed reducing the tariff's on red meat, tomatoes, 3 00:00:05,960 --> 00:00:08,119 Speaker 1: kiwi fruit among other food items. We are, of course 4 00:00:08,119 --> 00:00:10,680 Speaker 1: a big winner. Todd mclay's the Trade minister in indiaries 5 00:00:10,680 --> 00:00:10,959 Speaker 1: with us. 6 00:00:10,960 --> 00:00:12,160 Speaker 2: Good morning, Mike, good morning. 7 00:00:12,400 --> 00:00:14,760 Speaker 1: So what we got over the weekend from the White House? 8 00:00:14,760 --> 00:00:17,239 Speaker 1: Do we have detail what it actually means or was 9 00:00:17,280 --> 00:00:18,360 Speaker 1: it just an announcement. 10 00:00:19,320 --> 00:00:22,200 Speaker 2: Well, look, it's just an announcement, but my officials been 11 00:00:22,200 --> 00:00:23,880 Speaker 2: able to dig into it a little bit. It does 12 00:00:23,920 --> 00:00:26,200 Speaker 2: seem that the tariff rate of fifteen percent has been 13 00:00:26,600 --> 00:00:29,159 Speaker 2: rolled back on a number of products and sells up 14 00:00:29,200 --> 00:00:33,440 Speaker 2: there the most important ones or beef, beef offul and 15 00:00:33,520 --> 00:00:36,080 Speaker 2: a few other things in the beef sector, and then 16 00:00:36,159 --> 00:00:39,680 Speaker 2: also kiwi fruit. That's a saving about three hundred and 17 00:00:39,720 --> 00:00:43,440 Speaker 2: thirty million dollars. We yes to make that fifteen percent tariff, 18 00:00:44,120 --> 00:00:48,120 Speaker 2: but I've sort of said I'm welcome it cautiously. The 19 00:00:48,320 --> 00:00:51,919 Speaker 2: changing nature of decisions out of the Whitehouse still makes 20 00:00:52,120 --> 00:00:55,560 Speaker 2: it very uncertain for New Zealand exporters, and there are 21 00:00:55,560 --> 00:00:58,200 Speaker 2: many other exporters that are still facing the fifteen percent tariff, 22 00:00:58,200 --> 00:00:59,360 Speaker 2: which is challenging for them. 23 00:01:00,120 --> 00:01:03,319 Speaker 1: Say for beef, it goes back to what do we. 24 00:01:03,320 --> 00:01:07,600 Speaker 2: Know, So it goes back to before the fifteen percent 25 00:01:07,720 --> 00:01:10,440 Speaker 2: was put on. So for US it will be the 26 00:01:10,520 --> 00:01:14,280 Speaker 2: equivalent of the most Favored Nation status, which is very low. 27 00:01:14,319 --> 00:01:16,640 Speaker 2: It's less than one percent, So it really means a 28 00:01:16,760 --> 00:01:19,400 Speaker 2: very level playing field with every other beef and porter 29 00:01:19,880 --> 00:01:24,000 Speaker 2: in the world the same tariff freight that Australia faces. 30 00:01:24,280 --> 00:01:26,720 Speaker 2: The only difference there is from memory, Brazil faces about 31 00:01:26,720 --> 00:01:29,759 Speaker 2: a forty percent tariff, so you know we are more 32 00:01:29,800 --> 00:01:30,640 Speaker 2: competitive than them. 33 00:01:30,840 --> 00:01:31,920 Speaker 1: When does it start? 34 00:01:32,920 --> 00:01:35,920 Speaker 2: My understanding is it started already. Nobody gets money back, 35 00:01:36,000 --> 00:01:39,320 Speaker 2: but from the moment that the announcement was made just 36 00:01:39,360 --> 00:01:42,560 Speaker 2: a day or two ago. Look, that is very welcome news, Mike. 37 00:01:42,640 --> 00:01:46,560 Speaker 2: I think the reason it's happened is that the US 38 00:01:46,600 --> 00:01:49,920 Speaker 2: doesn't produce enough beef. They have to import it. We've 39 00:01:49,960 --> 00:01:52,600 Speaker 2: seen beef prices go up in the US. I guess 40 00:01:52,600 --> 00:01:55,200 Speaker 2: Hamburger is going to be more expensive, and that in 41 00:01:55,280 --> 00:01:59,520 Speaker 2: keying for another other fruit, the administration the presidents decided 42 00:01:59,560 --> 00:02:02,760 Speaker 2: to with the teriff right in itself. That's the first 43 00:02:02,760 --> 00:02:05,960 Speaker 2: time we've seen that. There's been nothing else really that 44 00:02:06,000 --> 00:02:09,440 Speaker 2: has gone back to zero. But what does concern me 45 00:02:09,480 --> 00:02:11,720 Speaker 2: a bit is that changing nature. The decision we're made 46 00:02:11,800 --> 00:02:13,600 Speaker 2: to take it off today. In the future they could 47 00:02:13,840 --> 00:02:16,480 Speaker 2: and put it back on. In the meantime, beef farmers 48 00:02:16,480 --> 00:02:20,840 Speaker 2: in New Zealand and the exports will be extremely pleased. 49 00:02:21,160 --> 00:02:23,760 Speaker 2: I think what we'll see is our beef exports returned 50 00:02:23,800 --> 00:02:26,680 Speaker 2: quite quickly to the levels they were before, to fifteen percent. 51 00:02:26,960 --> 00:02:28,960 Speaker 2: We could even see a bit more beef sold in 52 00:02:28,960 --> 00:02:29,440 Speaker 2: that market. 53 00:02:29,600 --> 00:02:32,160 Speaker 1: Elban Easy claims it's all him, his lobbying. 54 00:02:32,200 --> 00:02:35,400 Speaker 2: Do you believe that, Well, it's not for me to 55 00:02:35,840 --> 00:02:39,920 Speaker 2: question the views of another Prime minister. Of that's the 56 00:02:39,960 --> 00:02:42,680 Speaker 2: whole of New Zealand beef exporters who produce better beef 57 00:02:42,680 --> 00:02:44,639 Speaker 2: than Australia. Thank them all right. 58 00:02:44,720 --> 00:02:46,400 Speaker 1: Nice to talk to you, Tom McLay out of India 59 00:02:46,400 --> 00:02:48,440 Speaker 1: this morning. And here's the inside I'm reading over the weekend. 60 00:02:48,520 --> 00:02:52,359 Speaker 1: So rancher's difficulties increasing the herd they've got, drought, diminished 61 00:02:52,400 --> 00:02:56,120 Speaker 1: amount of grasslands, higher costs and buying feed important fertilizers 62 00:02:56,160 --> 00:02:59,400 Speaker 1: of double digit tariffs. Of course, tariffs on steel and 63 00:02:59,440 --> 00:03:02,640 Speaker 1: alumini increase the cost of farm equipment. Generally, we're in 64 00:03:02,680 --> 00:03:05,919 Speaker 1: one of the toughest cattle cycles in history. This is 65 00:03:05,919 --> 00:03:08,400 Speaker 1: a farmer out of Texas. Replacement heifers are down to 66 00:03:08,440 --> 00:03:11,639 Speaker 1: a twenty year low. And meantime, downtown in America, you're 67 00:03:11,639 --> 00:03:16,120 Speaker 1: average American for burger meat is paying somewhere between twelve 68 00:03:16,160 --> 00:03:18,079 Speaker 1: and eighteen percent. More So, they're sick of it, and 69 00:03:18,080 --> 00:03:20,440 Speaker 1: they've had enough, and so Trump acquiesced. 70 00:03:20,880 --> 00:03:23,800 Speaker 2: For more from The Mic Asking Breakfast, listen live to 71 00:03:23,880 --> 00:03:26,960 Speaker 2: news Talks at B from six am weekdays, or follow 72 00:03:27,000 --> 00:03:28,520 Speaker 2: the podcast on iHeartRadio.