NZ industry reacts to Trump’s tariffs

The Motor Industry Association (MIA) says the United States hiking tariffs on imported vehicles to 25 per cent may result in more Chinese cars coming into New Zealand.

US President Donald Trump has announced the higher levies, which are increasing from 2.5 per cent, will start being collected from Thursday, April 3.

Car-making countries such as Japan are concerned about the impact of the tariffs and there may also be implications for New Zealand, whose fleet relies on new and used imports.

Aimee Wiley, MIA’s chief executive, says if the US sticks with the proposed tariffs it may prompt Chinese carmakers to try to sell more vehicles in other markets, including New Zealand.

She notes some Chinese marques already build left-hand and right-hand drive units, reports the NZ Herald.

BYD, Jaecoo and MG are among the Chinese-owned brands already operating in New Zealand.

Wiley, pictured, adds some car parts may also become more expensive if specialised suppliers overseas are affected by the US tariffs.

The Motor Trade Association has told its members Trump’s tariffs could increase costs for imported parts and vehicles, reports the NZ Herald.

“However, New Zealand’s strong trade relationships and diversified markets should help cushion these effects,” it adds.