Confirmation today that New Zealand exports to the US will be subject to a 15 percent tariff is a slap in the face for our exporters and could mean higher prices here at home.

“This is a major fail for the Government and for our relationship with the US. Christopher Luxon has failed to secure a low tariff rate for our exports, while others around the world such as the EU and UK have managed to make deals. Unbelievably, the tariff has actually gone up from 10 to 15 percent on his watch,” Labour trade spokesperson Damien O’Connor said.

“Under Luxon, the cost of living is already increasing, making life harder. He promised his business background would help fix things, but it’s getting worse. Under this government, this economic uncertainty will only cause more instability and further stifle our economic growth.

“Businesses will have to decide whether to pass the costs on to American customers, or weather those themselves. They may have to explore new markets. None of these options are good for business confidence here at home.

“This is our second-largest market and exporters such as the meat sector will be grappling with the implications of this. This is an additional barrier to competitive access to a hugely valuable market.

“The ripple effects of tariffs imposed by the US on our trading partners will also hit us.

“Christopher Luxon needs to work harder for New Zealand’s interests overseas and remind the US that we have low tariffs on their goods and services being imported here,” Damien O’Connor said.