1 00:00:00,080 --> 00:00:01,520 Speaker 1: So where are we at this morning in this new 2 00:00:01,560 --> 00:00:03,880 Speaker 1: world of terrorists? Possibly a trade warren is the confusion 3 00:00:03,920 --> 00:00:06,520 Speaker 1: over our ten slash twenty percent sorted trade Minister Todd 4 00:00:06,600 --> 00:00:08,720 Speaker 1: McLay we with us good morning, my. 5 00:00:08,800 --> 00:00:10,400 Speaker 2: Good morning, ten or twenty. 6 00:00:11,920 --> 00:00:15,080 Speaker 3: Well, we will be facing ten percent, as every country 7 00:00:15,080 --> 00:00:18,160 Speaker 3: in the world will, although many others obviously have will 8 00:00:18,200 --> 00:00:21,560 Speaker 3: have a higher teriff rate than that. There was confusion 9 00:00:21,600 --> 00:00:24,480 Speaker 3: about where they got their numbers in as far as 10 00:00:24,480 --> 00:00:27,120 Speaker 3: what they think New Zealand's tariff rate applied against US 11 00:00:27,200 --> 00:00:31,160 Speaker 3: exports and into New Zealand. Actually our average rate is 12 00:00:31,160 --> 00:00:33,800 Speaker 3: about one point nine percent for the US. It seems 13 00:00:33,800 --> 00:00:36,960 Speaker 3: they've got some unusual formula to come up with twenty percent. 14 00:00:37,000 --> 00:00:40,680 Speaker 3: That's not correct. It's wrong, and our officials are starting 15 00:00:40,680 --> 00:00:41,680 Speaker 3: the process to correct. 16 00:00:41,760 --> 00:00:44,080 Speaker 1: So you still no further ahead this morning than we 17 00:00:44,080 --> 00:00:47,320 Speaker 1: were yesterday. Is it hard to get to a Trump official? 18 00:00:47,360 --> 00:00:49,800 Speaker 1: Given I'm assuming the whole world is trying to get them. 19 00:00:50,520 --> 00:00:52,120 Speaker 2: They're very, very busy over there. 20 00:00:52,159 --> 00:00:54,000 Speaker 3: I think you're right, a lot of countries that face 21 00:00:54,080 --> 00:00:57,080 Speaker 3: twenty thirty forty cent terrorists are making contact. I expect 22 00:00:57,120 --> 00:01:01,480 Speaker 3: to be loved, negotiation reached out. But we'll just work 23 00:01:01,560 --> 00:01:05,080 Speaker 3: through this. I mean, ultimately they are wrong. We don't 24 00:01:05,120 --> 00:01:07,640 Speaker 3: have a twenty percent tariff against the US. But putting 25 00:01:07,720 --> 00:01:10,240 Speaker 3: that aside, the lowest tariffrate in any country the world 26 00:01:10,280 --> 00:01:12,760 Speaker 3: faces is ten percent. So we want to fix that 27 00:01:12,840 --> 00:01:15,199 Speaker 3: for reputational reasons. But it's not like the shape. 28 00:01:15,200 --> 00:01:16,959 Speaker 1: What if you can't tell? But hre's your problem, Todd. 29 00:01:17,000 --> 00:01:18,880 Speaker 1: I mean what you may think is right, they may 30 00:01:18,920 --> 00:01:21,480 Speaker 1: not care about can we handle twenty. 31 00:01:22,520 --> 00:01:25,640 Speaker 3: Well no, so we're not facing a twenty percent tariff rate. 32 00:01:25,640 --> 00:01:28,160 Speaker 3: We're only facing ten percent. What they've said is that 33 00:01:28,240 --> 00:01:31,040 Speaker 3: our the teriffyct US export is face into New Zealand 34 00:01:31,360 --> 00:01:33,840 Speaker 3: is twenty percent. Then they've put us on the lowest 35 00:01:33,880 --> 00:01:36,319 Speaker 3: band of tariff, which is ten percent. So we're not 36 00:01:36,360 --> 00:01:38,039 Speaker 3: going to be having a higher tariff rate than that 37 00:01:38,120 --> 00:01:39,880 Speaker 3: it is ten percent. We just want to get the 38 00:01:39,920 --> 00:01:43,319 Speaker 3: record right because actually one point nine percent is a 39 00:01:43,319 --> 00:01:44,480 Speaker 3: lot different than twenty. 40 00:01:44,400 --> 00:01:47,000 Speaker 1: A lot of people texting me they see they claim 41 00:01:47,080 --> 00:01:49,960 Speaker 1: Trump sees GSTBO to all that stuff as a tariff. 42 00:01:50,080 --> 00:01:52,440 Speaker 1: Is that part of the calculation? Do you think? 43 00:01:53,200 --> 00:01:53,720 Speaker 2: No, it's not. 44 00:01:53,920 --> 00:01:56,160 Speaker 3: In fact, some things come out overnight. I've just had 45 00:01:56,320 --> 00:01:58,040 Speaker 3: a quick report that some wanting a very quick read 46 00:01:58,040 --> 00:01:59,920 Speaker 3: of it. It seems what they've done is they're taking 47 00:02:00,480 --> 00:02:03,840 Speaker 3: our exports of the US at nine billion dollars, their 48 00:02:03,880 --> 00:02:06,480 Speaker 3: imports in New Zealand about eight billion dollars, one billion 49 00:02:06,520 --> 00:02:09,560 Speaker 3: dollar difference. Applied that to their exports, which comes to 50 00:02:09,600 --> 00:02:12,440 Speaker 3: a twenty percent difference in the value of trade. 51 00:02:12,840 --> 00:02:14,720 Speaker 2: And so they're saying it's twenty percent. That's not a 52 00:02:14,800 --> 00:02:15,320 Speaker 2: teriff rate. 53 00:02:15,639 --> 00:02:17,760 Speaker 3: I think what they're actually saying to some countries of 54 00:02:17,800 --> 00:02:21,680 Speaker 3: the world is, you know, you you sell us more 55 00:02:21,720 --> 00:02:24,040 Speaker 3: than you buy from us. We want you to buy more. 56 00:02:24,440 --> 00:02:26,560 Speaker 3: But it's not the way tariff rates are worked out. 57 00:02:26,600 --> 00:02:30,000 Speaker 3: And will will will go, I mean ironically and buy 58 00:02:30,000 --> 00:02:32,040 Speaker 3: a new airplane the next week or so, or next 59 00:02:32,040 --> 00:02:34,280 Speaker 3: month or so, and and you know it'll swing in 60 00:02:34,320 --> 00:02:36,840 Speaker 3: the other direction. So we'll make that case to them, 61 00:02:37,080 --> 00:02:39,800 Speaker 3: but it won't change the ten percent because that's the 62 00:02:39,840 --> 00:02:41,720 Speaker 3: bottom that they're said they're putting on any country. 63 00:02:41,840 --> 00:02:44,080 Speaker 1: So we're buying one or two aeroplanes for the air force. 64 00:02:44,240 --> 00:02:48,240 Speaker 3: Todd Well, I mean, as you know, I went up 65 00:02:48,280 --> 00:02:51,720 Speaker 3: to up to Japan with the peer. We stopped in 66 00:02:51,760 --> 00:02:54,440 Speaker 3: an aeroplane in pap New Guinea for an extra day, 67 00:02:54,600 --> 00:02:56,880 Speaker 3: I'm all in favor of buying aeroplanes exactly. 68 00:02:57,480 --> 00:02:59,720 Speaker 1: Ultimately, where do you think this goes? Is this another 69 00:02:59,760 --> 00:03:01,480 Speaker 1: three and a half years of Trump and then will 70 00:03:01,560 --> 00:03:04,440 Speaker 1: get the world back in order? Or is this permanent issue? 71 00:03:05,120 --> 00:03:05,440 Speaker 2: Well? 72 00:03:05,760 --> 00:03:08,080 Speaker 3: Look, look, I think over the coming days and weeks, 73 00:03:08,080 --> 00:03:10,320 Speaker 3: we're going to see the announcement yesterday change. 74 00:03:10,840 --> 00:03:13,120 Speaker 2: Different countries of the world are going to react to it. 75 00:03:13,400 --> 00:03:14,280 Speaker 2: I think we are going. 76 00:03:14,200 --> 00:03:17,120 Speaker 3: To say, see escalation and retaliation of the European Union 77 00:03:17,280 --> 00:03:19,440 Speaker 3: is going to put things in place. China, Well, that's 78 00:03:19,520 --> 00:03:22,959 Speaker 3: not good for world trade. It's not good for New Zealand. Interestingly, 79 00:03:23,160 --> 00:03:25,040 Speaker 3: a number of the exporters I'm talking to now, they're 80 00:03:25,040 --> 00:03:27,440 Speaker 3: able to digest it. They're telling me they see more 81 00:03:27,480 --> 00:03:30,240 Speaker 3: than just opportunity at market. Some are saying compared to 82 00:03:30,240 --> 00:03:33,440 Speaker 3: their competitors who are facing high tariff rates, they might 83 00:03:33,480 --> 00:03:36,040 Speaker 3: be able to sell more. And there's an economist in 84 00:03:36,080 --> 00:03:38,440 Speaker 3: New Zealand over night saying that actually we could see 85 00:03:38,440 --> 00:03:39,160 Speaker 3: our trade grow. 86 00:03:39,520 --> 00:03:40,800 Speaker 2: I'm not sure about that. 87 00:03:40,960 --> 00:03:42,640 Speaker 3: All I'm saying is I think there's a way to 88 00:03:42,680 --> 00:03:45,480 Speaker 3: go yet before we see exactly what this meetings. But 89 00:03:45,640 --> 00:03:48,600 Speaker 3: if other countries of the world put in place significant terrace. 90 00:03:48,880 --> 00:03:50,400 Speaker 3: It is going to be a challenge of the world's 91 00:03:50,400 --> 00:03:52,880 Speaker 3: economy and it will be a challenge for New Zealand exporters. 92 00:03:53,120 --> 00:03:55,520 Speaker 1: Just real quick, does it help us out with India? 93 00:03:55,560 --> 00:03:57,360 Speaker 1: They got whacked hard. Do we turn up as a 94 00:03:57,360 --> 00:03:59,440 Speaker 1: free trader and go, you see those guys, this is 95 00:03:59,440 --> 00:04:01,400 Speaker 1: what we want to and they look at us more kindly. 96 00:04:02,360 --> 00:04:02,600 Speaker 2: Yeah. 97 00:04:03,000 --> 00:04:05,800 Speaker 3: I discussed this with the Indian Trade Minister when I 98 00:04:05,840 --> 00:04:07,320 Speaker 3: was here a couple of weeks ago, when we launched 99 00:04:07,320 --> 00:04:10,280 Speaker 3: the negotiation. We've both agreed a respective of what might 100 00:04:10,320 --> 00:04:12,480 Speaker 3: happen around the world with the US, we can push 101 00:04:12,520 --> 00:04:15,600 Speaker 3: on and get our deal done. We have capacity on 102 00:04:15,640 --> 00:04:18,960 Speaker 3: both sides to be dealing with other nations and to negotiate. 103 00:04:19,360 --> 00:04:22,480 Speaker 3: But certainly, you know, I think in as far as 104 00:04:22,520 --> 00:04:25,800 Speaker 3: our discussion with other countries about getting barriers down, creating certainty, 105 00:04:26,240 --> 00:04:27,040 Speaker 3: it does help. 106 00:04:27,160 --> 00:04:27,360 Speaker 2: Yes. 107 00:04:27,839 --> 00:04:30,119 Speaker 1: Good, have a good week. I appreciate it. Tom McLay, 108 00:04:30,160 --> 00:04:30,880 Speaker 1: our Trade Ministry. 109 00:04:31,400 --> 00:04:34,279 Speaker 3: For more from the Mic Asking Breakfast, listen live to 110 00:04:34,400 --> 00:04:37,480 Speaker 3: news talks. It'd be from six am weekdays, or follow 111 00:04:37,520 --> 00:04:39,080 Speaker 3: the podcast on iHeartRadio.