New Zealand could be the unexpected beneficiary of Donald Trump's trade wars.

Overall dairy prices are down 1.2 percent at Fonterra's latest auction, capping off a stable 18 months.

The US President's tariff threats have put global markets in a state of flux.

But JMI Wealth director Andrew Kelleher told Mike Hosking New Zealand's dairy sector could ironically benefit from Trump's efforts to protect America's dairy sector.

"It feels like a negative development for a small island trading nation but it's not impossible that we could wee more demand for our dairy products off the back of it."

LISTEN ABOVE AS ANDREW KELLEHER TALKS TO MIKE HOSKING