Wellington: New Zealand and Australia have begun working closely with other countries to coordinate a collective response aimed at defending free trade, following the United States’ imposition of widespread tariffs.
New Zealand Prime Minister Christopher Luxon revealed that he has been in discussions with leaders from Singapore, Vietnam, and Malaysia, along with the President of the European Commission, Ursula von der Leyen, to explore ways of reinforcing international trade rules.
In a speech on Thursday, Luxon proposed that members of the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could form an alliance to promote rules-based trade practices. This comes in the wake of escalating trade tensions triggered by U.S. President Donald Trump’s recent tariff hikes, which sparked global market volatility. However, Trump unexpectedly announced a 90-day suspension of most of these tariffs on Wednesday.
Australian Foreign Minister Penny Wong confirmed that her government is also engaging in talks with nations including Japan, South Korea, India, and various Southeast Asian countries, as well as the EU, to craft a united stance on trade.
“There is a coalition of nations that values open, fair, and rules-based trade,” Wong told ABC News.
In a series of posts on X (formerly Twitter), Luxon highlighted his recent calls with Singapore’s Prime Minister Lawrence Wong, Vietnam’s Prime Minister Pham Minh Chinh, and Malaysian Prime Minister Anwar Ibrahim. He emphasized the need to strengthen the foundations of free trade to support economic development and job creation.
Luxon added that New Zealand and the EU are exploring joint initiatives to uphold the global trade rules essential to New Zealand’s economic wellbeing.
The CPTPP, which includes New Zealand, Australia, Canada, Japan, the UK, and several others, is seen as a potential platform for coordinating such efforts.
Luxon will travel to the UK later this month for discussions with Prime Minister Keir Starmer focusing on trade, security, and global geopolitical dynamics.
“New Zealand must actively advocate for its economic interests and the systems that support them,” Luxon said. “Staying on the sidelines is not an option.”
Despite being hit with a 10% U.S. import tariff—on the lower end of Trump’s new levies—both Australia and New Zealand have opted not to retaliate. Last year, the U.S. accounted for 12% of New Zealand’s exports and 5% of Australia’s.
