New Zealand is striving to tackle the challenges posed by potential U.S. tariffs while seeking to boost economic growth through immigration policy reforms. New Zealand's Finance Minister Nicola Willis stated that the tariff measures that might be implemented after Trump's inauguration will not affect New Zealand's trade interests. She has instructed diplomats to clarify New Zealand's position to the U.S. to ensure avoidance of tariff impacts.
In an interview in Wellington, Willis said: "Our initial position is to ask the U.S. not to impose tariffs. We will do our best to project New Zealand's best image through diplomatic means." Although New Zealand is a relatively small trade partner to the U.S., it is New Zealand's second-largest export market, and bilateral trade relations have grown significantly in recent years.
Data shows that in the year ending September, New Zealand exported goods and services worth NZD 15.8 billion (approximately USD 9 billion) to the U.S., while importing NZD 11.3 billion. Willis described the two countries' trade relationship as "quite balanced" and maintained strong cooperation in many areas. She pointed out that the current tariff on New Zealand beef exported to the U.S. is less than 1%, indicating low trade barriers between the countries.
Willis emphasized that American consumers' fondness for New Zealand products, especially wine and dairy, is a crucial pillar of the long-term partnership between the two countries. She expressed cautious optimism about the possibility of the new government focusing on New Zealand trade, stating: "The U.S. has dozens of global trade partners, and New Zealand is not the top priority."
Nevertheless, the New Zealand government is closely monitoring potential policy changes. Willis said diplomats are evaluating various possibilities but declined to speculate on specific measures if the U.S. imposes tariffs.
Meanwhile, New Zealand faces pressure for economic recovery. The Treasury is set to release the semi-annual economic and fiscal update next week, which is expected to show slower economic growth, widening fiscal deficits, and a delay in achieving a surplus until after 2028. Willis acknowledged that the government might need to increase borrowing and will adjust the bond issuance plan in the update.
To address these challenges, the New Zealand government also plans to revise the "Golden Visa" policy to attract more international investors. The current Active Investor Plus Visa program, which was adjusted in 2022, has underperformed, with only 35 applications approved, totaling just NZD 352 million in investments.
Willis pointed out that policy adjustments by the previous government led to reduced visa attractiveness and stated that detailed announcements on the visa reform would be made in the coming weeks. This adjustment is expected to rejuvenate the Golden Visa, bringing more foreign capital into New Zealand.
In the current economic environment, the New Zealand government is attempting to balance domestic and international pressures through various efforts, maintaining stable relations with major trading partners and promoting economic recovery and attracting international capital through policy reforms.
