Close
 

Could New Zealand retail be Trump-ed by tariffs?

  • News
  • October 15, 2018
  • Jai Breitnauer
Could New Zealand retail be Trump-ed by tariffs?

There’s been a funny meme going around recently about time zones. It says something like, “In Sydney it’s 8am, in London it’s 10pm, and in the USA it’s 1942.” Of course, this relates directly to the Brett Kavanaugh scandal. But to be honest, it could apply to a whole pile of policies introduced under the Trump administration, particularly the revival of trade tariffs.

Way back in the 19thand early 20thCenturies, trade tariffs were commonplace. As globalisation and the internet have opened-up international markets, many tariffs – or taxes – on imports have been reduced or removed by many countries to allow more competition and consumer choice, and free trade agreements have been a preferred modus operandi. However, last year, Trump dialled international trade back to the glory of the wartime era by placing extensive tariffs on imports from China – a campaign promise – which of course China matched.

Most economists recoiled at the news. Generally, they advise against these sorts of broadly applied, punitive tariffs. They hurt the consumer as higher costs are passed on, they hurt manufacturers who rely on foreign imports, and they can make the domestic market less efficient as competition is reduced. Bad news for the US and China, but what does all this mean for New Zealand?

“The tariffs introduced by the United States on imports from China have led to retaliatory tariffs being introduced by China. Overall, about US$360 billion of bilateral trade has been affected,” says Jim Robinson, Manager Trade and Regulatory Cooperation at New Zealand’s Ministry of Business, Innovation & Employment.

“These additional tariffs make trade between the US and China more expensive, dragging on bilateral trade.  While in the short-term this could lead to an increase in the supply and reduction in prices of some goods in third markets, including New Zealand, the flow-on effects are difficult to predict.”

Reassuringly, Robinson says that so far, the impact on the NZ economy has been limited. However, it is hard to know if that will be maintained. 

“Further escalation in trade tensions are a source of downside risk for the global economy, which poses downside risk for the New Zealand economy,” he says. “Higher trade barriers could significantly disrupt global supply chains, making some tradable goods more expensive. It is difficult to predict what the net impact for New Zealand’s imports would be.”

The US-China trade war, coupled with the upcoming UK departure from the EU (increasingly looking like a no-deal Brexit), could place secondary tension on global markets, affecting NZ trade. But in the theatre of Trump, literally anything could happen, so best not hold your breath worrying about it. 

​ ​

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.

 

Kiwi Property makes $138m net profit for the year

  • News
  • May 21, 2019
  • Radio New Zealand
Kiwi Property makes $138m net profit for the year

Kiwi Property has reported a strong full year underlying profit, as it continues to reinvest in its Auckland retail and office properties.

Read more
 
 

Thankyou’s latest campaign combines scent and charity work

  • News
  • May 21, 2019
  • StopPress Team
Thankyou’s latest campaign combines scent and charity work

Australian charity product organisation Thankyou has launched its latest Kiwi campaign, combining that fact that 100 percent of its profit goes towards helping end global poverty with its use of perfume-grade botanical oils in its products.

Read more
 
 

From edible insects to beautiful homeware: Made of Tomorrow’s co-founder talks its new venture

  • Design
  • May 21, 2019
  • Idealog
From edible insects to beautiful homeware: Made of Tomorrow’s co-founder talks its new venture

Most people would be in agreement that bugs, planters and room dividers don’t have much in common, but Matt Genefaas and Dan Craig would beg to differ. The two juggle running an edible insect company, Crawlers, as well as a homeware company, Made of Tomorrow. Genefaas has a chat about what the new furniture range, Space Between, was inspired by, as well as how him and Craig spend their days in slashie roles moving between pushing dried insects to the world, as well as polished mirrors and space dividers.

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
Regional rollercoaster
What does retail look like in 2019 for ...
Concept to closet
Business coverage of New Zealand Fashion Week.
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 ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
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 ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Why is the next generation so anxious? Here's how young founders can avoid burn-out

  • Opinion
  • May 21, 2019
  • Jennifer Young
Why is the next generation so anxious? Here's how young founders can avoid burn-out

There may be good reason to be concerned about our young entrepreneurs. Millennials and Generation Z have been labelled generation burn-out, generation snowflake and described as narcissistic, entitled, tech-dependent and fragile. They’re also oversaturated with headlines about the raft of issues like climate change they have to tackle, plus concerns about the impact of technology and social media on their mental health. Jennifer Young explores possible reasons why the younger generation is so anxious, as well as what young founders can do to avoid burn-out.

Read more
 
 

Vodafone NZ sold to private investors for $3.4b

  • News
  • May 21, 2019
  • Radio New Zealand
Vodafone NZ sold to private investors for $3.4b

Infrastructure investor Infratil is teaming up with a Canadian investment firm to buy the local operations of Vodafone for $3.4 billion.

Read more
 

Readings present revised plan for Courtenay Central

  • Property
  • May 16, 2019
  • Radio New Zealand
Readings present revised plan for Courtenay Central

The company that owns Courtenay Central in Wellington says it has big plans for redeveloping the complex - which is closed due to earthquake risks.

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

}