Christopher Luxon says the Government is “very aligned” as it grapples with global trade tensions, despite Winston Peters calling some of the language around “trade wars” hysterical.
The pair appeared at odds over the Government’s messaging last week, with Peters saying, “I hope that he’ll get my message and he’ll call me next time” after Luxon said he was calling some world leaders about the situation.
The Foreign Minister gave a speech yesterday where he said some language used around new US tariffs had been “hysterical”.
Speaking to Breakfast this morning, Luxon said his ministers were “very aligned” on trade issues.
“I agree that we definitely don’t want people getting into trade wars. And we don’t want people putting tit-for-tat tariffs on – that is just not something that we want to see.”
He added: “I think the media are trying to beat this into something that it’s not. We are very, very aligned across our Government about how to handle this situation.”
Markets have faced a wild ride over the past fortnight as US President Donald Trump attempts to launch his new tariff regime, which has already seen numerous changes.
The PM told Breakfast he was expecting to speak to Peters later today. When asked if he stood by his tone, Luxon said: “Absolutely, and I agree with him (Peters).
“We’re both saying the same thing. You’ve seen a lot of the international media last week, which was really hyping everybody up. We don’t want to see that retaliatory reaction.”
‘I don’t expect as PM to be sharing my speeches either’
Peters, giving a speech from Hawaii yesterday, cautioned against using “military language” such as “trade war” and “fight”, calling it “hysterical and short-sighted”.
It comes as the White House clarified its China tariff is 145%, not 125% as previously thought. (Source: 1News)
On Friday, Peters told media that discussions of a potential alternative trading bloc involving the European Union and the Trans-Pacific trade pact – known as the CPTPP – which Luxon had brought up in his own speech last week, had all been “very premature”.
In his speech, Luxon concluded by saying free trade was “worth fighting for – and I’m up for that fight”. The PM has also previously used the term “trade war”.
Asked if he had sufficiently consulted Peters on his approach, including on speaking to a number of world leaders on Thursday, Luxon pushed back.
“Our Cabinet had a really good conversation around tariffs, and we’re all aligned on what our approach actually is. No disrespect, but I empower my ministers to make their own decisions and make their own speeches. I don’t expect to see theirs, and there’ll be times when I don’t expect as Prime Minister to be sharing my speeches either.”
He added: “In my model of how I run Government, I expect big ministers to own their agendas, their portfolios. On tariffs – yes, Winston has a role to play, but so does Todd McClay, so does Judith Collins, so does Nicola Willis, and so do I.”
Trade Minister Todd McClay has previously backed Luxon, telling RNZ the PM and Peters were “saying similar things” and that “we’re being very calm as a government.”
The US president’s tariff regime has been paused – except for imports from China – after upheaval in the markets. (Source: 1News)
The apparent disagreement emerged after Donald Trump escalated tariffs against China to 145% while placing a 90-day pause on tariffs for other countries.
Luxon is scheduled to travel to the UK later this week, where he will meet with Prime Minister Keir Starmer and King Charles.
