Close
 

America’s been Trumped: What his win means for New Zealand businesses

  • News
  • November 10, 2016
  • Elly Strang
America’s been Trumped: What his win means for New Zealand businesses

Against all odds, Donald Trump became the president of the United States yesterday.

What’s more, he also has the support of a unified Republican Congress behind him, which means he’ll be in a very advantageous position to bring about change.

Economic change is one of the areas of growing concern worldwide.

When the news of him being elected president broke, it wasn’t just people that reacted in shock – the world’s financial markets were rocked.

The NZX suffered its biggest fall in almost eight years yesterday, down 3.3 percent on the day.

There were also long-term worries that Trump’s anti-globalisation stance will increase protectionism and put trade barriers in place against other countries.

Though New Zealand is over 12,000km away from the US, it’s possible the effects of Trump as president will be felt by local Kiwi businesses.

Retail NZ general manager of public affairs Greg Harford says it’s too early to know the impacts of Donald Trump being elected as president on businesses here.

He says Trump doesn’t take office until January, so any potential policy changes are still a while off.

“In the short term, the biggest potential impact is likely to come from any significant changes in the value of the US dollar versus the NZ dollar, which would impact the cost of imported goods – but there’s no sign of an immediate crash,” he says.

“In the longer-term, the US appears likely to become more isolationist in its approach, and less open to free trade.

“This may make it harder to source goods, and harder to sell directly into the US – but we really need to see exactly what policies the new administration will be implementing before we are able to be certain about what the impacts will be.”

Business NZ chief executive Kirk Hope had a grim outlook on the situation.

 He said that if carried out, Trump’s trade policies would not be in New Zealand’s best interests.

"The US is New Zealand’s third largest export market,” he said.

“Trade with the US earns New Zealand over $5 billion a year in products including meat, dairy and wine, and over $2 billion a year in services. A reduction in this level of trade would make a difference to New Zealand’s growth prospects.

“International trade generally could become more uncertain, as statements made during the Presidential campaign indicated an intention for the US to impose large tariffs on imports into the US from China and Mexico.

“This raises the possibility of tariff retaliation and a more general increase in protectionism by other countries. The overall result could be a general decrease in international trade. This would not be in New Zealand’s interests, given that we are a highly trade-reliant economy.”

He said the hope is that the statements made by Donald Trump during his campaign about trade were just rhetoric so the US will keep its current approach to trading.

ExportNZ had a similar view, with executive director Catherine Beard saying she hoped common sense would prevail.

“This would include the US taking a leadership role on trade in the TPPA region,” she said.

Trump notably staunchly opposes the TPP in an economic plan he released in September.

“There will be no Trans-Pacific Partnership, even if the President and Congress are reckless enough to pass it in a lame-duck session against the will of the American people,” he said.

Meanwhile, a a recent report from US-based global financial services firm Morgan Stanley has found that if Trump's proposals restricting trade and immigration are carried out, it could have a huge impact on the retail economy in the US to people on both sides of the till.

“Elevated economic policy uncertainty, as well as a possible deportation-linked decline in consumer demand and labour under a Trump presidency would counteract the consumer spending benefit from lower taxes,” Morgan Stanley consumer economist Paula Campbell Roberts said.

Whatever happens next, companies the world over will be watching with bated breath.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Macpac has created an online megastore

  • Technology
  • September 13, 2019
  • The Register
Macpac has created an online megastore

New Zealand outdoor equipment retailer Macpac found its website wasn’t keeping up with its $10 million plus international expansion, so it’s invested in a new site which introduces new content, accessibility and a frictionless experience.

Read more
 
 

Pak'nSave wins August's Ad Impact Award

  • News
  • September 12, 2019
  • StopPress Team
Pak'nSave wins August's Ad Impact Award

August was an amazing month for advertising and choosing a winner of the Colmar Brunton Ad Impact Award was a difficult task. This month, the honour goes to PAK’nSAVE with their latest advertisement ‘Saveyest Country’, which uses their classic stick man to show how New Zealanders are saving, not just at PAK’nSAVE.

Read more
 
 

Spark’s new concept store at Westfield Newmarket

  • Design
  • September 12, 2019
  • Sarah Dunn
Spark’s new concept store at Westfield Newmarket

When Westfield Newmarket opened, telecommunications company Spark took the opportunity to launch a new concept store which prioritised innovative technology and an immersive retail experience.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Trust the process: Is there still a place for liquor licensing trusts?

Liquor licensing trusts are a unique corner of the retail market, but is the model still relevant in our fast-changing business environment? Sarah Dunn weighs ...

 
 
Sponsored content

Recruitment with a fresh frame of mind

Frame Retail is the recruitment agency with an eye for fashion retail.

 

Kathmandu becomes Australia and New Zealand’s largest B Corp business

  • News
  • September 11, 2019
  • The Register
Kathmandu becomes Australia and New Zealand’s largest B Corp business

Listed outdoor goods retailer Kathmandu has secured B Corp accreditation, making it the largest business of its kind to have done so in Australia and New Zealand.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}