Early Edition with Ryan Bridge

Francesca Rudkin: Let China and the US sort it out


Listen Later

Sometimes being the grown up in the room is deeply unfulfilling, pragmatic, sensible.

Considering consequences, taking a long-term view, they're all good, admirable words, and we should take some solace in them.

But sometimes I think we'd rather just throw a plate at the wall.

And so, it is. Was the government's response yesterday to the Trump tariffs essentially to roll over and take it understandable? Sure. Sensible. Yep, frustrating. Very.

The government confirmed we're not in the queue to negotiate a trade deal with President Trump's administration, nor are we interested in taking legal action over it, and the tariff hit will come after exporters had an excellent March.

It's a shame the party music has hit a bum-note, we want the growth. We want good export news, but without the dark tariff cloud lingering in the distance.

As Trade Minister Todd McClay said yesterday, we probably couldn't negotiate between below the current 10% rate and the legal process would be long winded and would probably go nowhere.

I'm presuming, like the majority of us who aren't diplomats and haven't been in a room negotiating a trade deal, this is a well-considered plan.

One based on experience and insider information, but perhaps also because making a fuss could have unintended consequences and result in even higher tariffs.

It also makes sense to keep our head down until our two biggest trading partners, China and US, have sorted out their own tiff.

We need to ensure both are feeling valued by us and not be seen to take sides as we focus on growing our trademark.

Will the plate throwers get sensible? Trump stated during a White House news conference that the final tariff rate with China would come down substantially from the current 145%.

He said the US would be very nice to China and not play hardball.

Trump's remarks towards China come on the same day the IMF released a new report showing the United States faces the biggest downgrade among advanced countries due to the increase in tariffs and the uncertainty they've caused.

The IMF predicts the US economy will grow 1.8% this year, down from the estimated 2.7%.And there's a 40% chance of recession.

So, is this a case of Trump blinking in a first sign of some steps towards stabilizing global trade? Is it a move by Trump to calm the nerves?

The markets responded well to both Trump's tariff call on China and his remarks. He has no intention of firing the Federal Reserve chair.

I don't think anyone knows what's to come next or how Trump will respond to Chinese social media hashtags such as Trump admitted defeat, but I much prefer the adult Trump rather than the one throwing plates.

In the meantime, New Zealand shall remain patient and diplomatic, settle in and see what change may occur again. Before the 90-day pause is up.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

...more
View all episodesView all episodes
Download on the App Store

Early Edition with Ryan BridgeBy Newstalk ZB


More shows like Early Edition with Ryan Bridge

View all
Nine To Noon by RNZ

Nine To Noon

20 Listeners

Mediawatch by RNZ

Mediawatch

14 Listeners

Saturday Morning with Jack Tame by Newstalk ZB

Saturday Morning with Jack Tame

3 Listeners

Heather du Plessis-Allan Drive by Newstalk ZB

Heather du Plessis-Allan Drive

15 Listeners

The Mike Hosking Breakfast by Newstalk ZB

The Mike Hosking Breakfast

62 Listeners

The Re-Wrap by Newstalk ZB

The Re-Wrap

3 Listeners

Weekend Sport with Jason Pine by Newstalk ZB

Weekend Sport with Jason Pine

5 Listeners

The Weekend Collective by Newstalk ZB

The Weekend Collective

4 Listeners

The Front Page by NZ Herald

The Front Page

16 Listeners

The OneRoof Radio Show by Newstalk ZB

The OneRoof Radio Show

6 Listeners

The Leighton Smith Podcast by Newstalk ZB

The Leighton Smith Podcast

114 Listeners

Smart Money by Newstalk ZB

Smart Money

1 Listeners

The Detail by RNZ

The Detail

52 Listeners

Matt Heath & Tyler Adams Afternoons by Newstalk ZB

Matt Heath & Tyler Adams Afternoons

2 Listeners

Kerre Woodham Mornings Podcast by Newstalk ZB

Kerre Woodham Mornings Podcast

0 Listeners

A Captain's Cup by Radio Sport

A Captain's Cup

1 Listeners

The Property Academy Podcast by Opes Partners

The Property Academy Podcast

31 Listeners

Between Two Beers Podcast by Steven Holloway & Seamus Marten

Between Two Beers Podcast

94 Listeners

Newstalk ZB ANZAC Centenary Tribute by Newstalk ZB

Newstalk ZB ANZAC Centenary Tribute

0 Listeners

Shared Lunch by Sharesies

Shared Lunch

11 Listeners

Kiwi Yarns by Stuff | Brodie Kane Media

Kiwi Yarns

18 Listeners

Sportstalk with D'Arcy Waldegrave by Newstalk ZB

Sportstalk with D'Arcy Waldegrave

0 Listeners

On The Front Foot by Newstalk ZB

On The Front Foot

5 Listeners

Holiday Breakfast by Newstalk ZB

Holiday Breakfast

0 Listeners

The Superior Sailor Series by Newstalk ZB

The Superior Sailor Series

0 Listeners

When the Facts Change by The Spinoff

When the Facts Change

18 Listeners

Rugby Direct by Newstalk ZB

Rugby Direct

3 Listeners

News Fix by Newstalk ZB

News Fix

0 Listeners

The Big League Podcast by Newstalk ZB

The Big League Podcast

2 Listeners

Election 2023: The Front Bench by Newstalk ZB

Election 2023: The Front Bench

0 Listeners

All Sport Breakfast Canterbury by NewstalkZB

All Sport Breakfast Canterbury

0 Listeners

Sports Fix by Newstalk ZB

Sports Fix

1 Listeners

Football Fever by Newstalk ZB

Football Fever

0 Listeners