Steel deal a kick in guts for NZ, says industry
A decision by the United States to not exclude New Zealand from US steel and aluminium tariffs is ‘‘a kick in the guts’’ that could result in job losses, the industry says.
The US has decided to make some of its allies, such as Australia, exempt from an import tax on steel and aluminium. But New Zealand missed the cut along with other traditional US allies South Africa and Japan.
Employers and Manufacturers Association (EMA) chief executive Kim Campbell said while the decision was not surprising, it was still ‘‘a kick in the guts’’.
‘‘What we have trouble trying to figure out is the rather random nature of the countries that have been made exempt,’’ he said.
US President Donald Trump also postponed introducing tariffs on steel and aluminium imports from some ‘‘allies’’, including the European Union, Canada and Mexico, for 30 days.
The decision to not exclude New Zealand appeared to fly in the face of an historically close strategic relationship with the US, Campbell said.
‘‘It seems our closest allies are fair-weather friends.’’
Imposing steel and aluminium tariffs on Kiwi exporters would make other markets more difficult to access because there would be greater competition, he said.
It was not clear what impact the tariff would have on New Zealand industries but it could result in some job losses in the steel and aluminum sector, he said.
New Zealand steel mills would have been anticipating the tariff, he said. ‘‘Trump signalled what he was going to do and he followed through on it.’’
Trade Minister David Parker said he was ‘‘disappointed’’ with the decision and he and Prime Minister Jacinda Ardern had written to their ‘‘US counterparts’’, and directed officials to engage at all levels.