In a recent discussion, economists have been puzzled by the White House’s claim of a 20% tariff on American goods imported into New Zealand. John Ballingall, an economist from Sense Partners, strongly criticises this figure, labelling it “garbage economics.” He clarifies that this percentage is not an actual tariff; instead, it appears to stem from a misinterpretation of the bilateral trade deficit and the amount of goods New Zealand exports to the US.
Ballingall argues that the White House likely took the trade deficit and divided it by US imports from New Zealand to arrive at this percentage. He dismisses this method as misleading and emphasizes the actual figure could be around 1.8% for average tariffs on US goods coming into New Zealand. Nevertheless, he acknowledges that his calculations also hover near 20% as a plausible range for tariffs.
To gain deeper insights into the implications of tariff impacts on the global economy and to explore alternative calculations, viewers can catch John Ballingall in the latest episode of Markets with Madison. The show provides valuable investment insights from industry experts, offering guidance every Monday and Friday.
Madison Malone, former producer and host of investment broadcasts, now helms the NZ Herald’s Markets with Madison, having transitioned to this role in 2022, focusing on business and economic coverage.
Economists are questioning the US claim of a 20% tariff on imports to New Zealand. John Ballingall from Sense Partners calls the figure ‘garbage economics,’ arguing it misrepresents trade deficits. He suggests that actual average tariffs are closer to 1.8% and analyses the potential economic impacts during recent episodes of Markets with Madison.
The discussion surrounding the claimed 20% tariff on US imports into New Zealand reveals deep discrepancies in economic calculations. John Ballingall criticises the origin of this figure and suggests that closer examination brings to light a much lower tariff rate. Understanding these nuances is crucial for evaluating the longstanding trade relations between the US and New Zealand. Insights from experts underscore the importance of accurate economic analysis to avoid unintended consequences in the global trading landscape.
Original Source: www.nzherald.co.nz
