The New Zealand Ministry of Foreign Affairs & Trade (MFAT) recent Market Intelligence report looks at global trade policy tensions and how to weather the storm in these uncertain times.
Introducing the report, MFAT notes:
“The rapid escalation of global trade tensions in recent months has generated a highly uncertain trading environment, which is expected to weigh on global growth.
“Tariff hikes have started to impact some international merchandise trade flows, with Chinese exports to the United States in April around 20% lower compared to the same month a year ago. The fall in exports to the US looks to have been diverted to markets in Asia and Europe.
“Disruptions to trade look to have fed through to global manufacturing activity. Surveys of Chinese manufacturers suggest new orders for exports fell heavily in April.
“The temporary respite in trade tensions between the United States and China has been followed by a rise in shipping costs on some trans-Pacific routes. Importers in the United States may be bringing orders forward while tariffs are lowered.
“To date, there has been little evidence of trade disruptions for New Zealand. Export commodity prices remain elevated, and the value of merchandise exports was 25% higher in April compared to last year. Nevertheless, the rapid change in trade policy is likely to provide ongoing challenges for New Zealand exporters.”
Read the full report on their website.