The Reserve Bank of New Zealand (RBNZ) Governor Christian Hawkesby warned that U.S. tariffs could disrupt global supply chains and impact New Zealand’s economy, with some local industries more exposed than others.
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Hawkesby told a parliamentary committee: “We know from our experience, from the COVID experience, that supply side impacts are significant, and that are long-lasting and can create real challenges.”
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He said the global economic structure remains in flux: “There’s still a lot of uncertainty about how the structural framework of the global economy sort of realigns itself now.”
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Hawkesby noted the RBNZ is “revising down projections for global growth” as higher tariffs are “unambiguously” slowing global economic activity.
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While New Zealand faces a 10% U.S. tariff on exports, a softer NZ dollar may provide some cushion; however, weaker global growth among trade partners remains a concern.
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“The level of tariffs is still high — we know that. That will have an impact globally,” Hawkesby said, adding the situation remains fluid and uncertain.
This article was written by Eamonn Sheridan at www.forexlive.com.
