Free trade fan Christopher Luxon. (Image: Getty Images / The Spinoff)
Free trade fan Christopher Luxon. (Image: Getty Images / The Spinoff)

The BulletinApril 14, 2025

Luxon holds the line as Trump triggers tariff whiplash

Free trade fan Christopher Luxon. (Image: Getty Images / The Spinoff)
Free trade fan Christopher Luxon. (Image: Getty Images / The Spinoff)

With Trump’s on-again, off-again tariffs rattling global markets, the PM is vowing to fight for free trade – and not everyone’s happy about it, writes Catherine McGregor in today’s extract from The Bulletin.

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Tech spared from worst of tariffs – for now  

A whiplash week in the world of tariffs ended with one more flip-flop over the weekend. In a move that left tech giants cheering, Donald Trump announced that smartphones, computers and other electronics will be exempt from the United States’ 125% (or is it 145%?) “reciprocal” tariff on China.

Big tech companies like Apple, which had seen US$773 billion shaved off its value in just four days, can “breathe a huge sigh of relief”, US tech analyst Dan Ives said on Saturday – although perhaps not so much now that Howard Lutnick, Trump’s commerce secretary, says the electronics exemptions are not permanent. Lutnick had tried to spin the eye-watering Chinese tariffs as a win for the American tech sector, claiming they would create “an army of millions and millions of people screwing in little, little screws to make iPhones” on US soil. That, of course, was always a fantasy. As Apple CEO Tim Cook has pointed out, the US lacks even a basic pool of tooling engineers: “In China, you could fill multiple football fields.”

Peters the pragmatist  

If that last-minute backpedal looked chaotic, Winston Peters would probably agree – and quietly note that he called it. Speaking in Hawai’i, the foreign minister warned against what he called the “hysterical” and “short-sighted” use of military metaphors like “trade war” and “fighting” for free trade. His comments doubled as a veiled rebuke of PM Christopher Luxon, who last week declared that free trade “is worth fighting for – and I’m up for that fight.” More pointedly, reports Adam Pearse in the Herald, Peters added: “My advice to politicians is tone down, wait til you see and know what’s going on.” With Trump’s latest flip-flop, the foreign minister might be feeling vindicated.

A PM-CEO for uncertain times  

His deputy might not be overly impressed, but Luxon’s performance last week drew measured praise from commentators including former National and NZ First staffer Georgina Stylianou in The Post (paywalled) and Anna Rawhiti-Connell in The Spinoff. Both argued that the prime minister’s instincts – pro-free trade, pro-institution, pro-diplomacy – make him a good fit for this volatile moment. “You don’t have to feel remotely inspired by Luxon’s words or his love of free trade,” Rawhiti-Connell wrote, “but faced with a disinhibited, angry bear obsessed with deference who is intent on burning institutions down, they are what they need to be.”

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— Editor

NZ economy caught in the crossfire  

While we’ll escape the worst of the economic damage, New Zealand is still set to feel the effects of Trump’s economic brinkmanship. The silver lining? Lower interest rates, which economists say are likely to keep falling as a global slowdown affects commodity prices and New Zealand exporters take a hit. While the US has backed off on some of its China tariffs, our two largest trading partners are still going at it “head to head, hammer and tong”, Kiwibank’s Jarrod Kerr tells OneRoof’s Catherine Masters.

The impact of all that turmoil on our export sector may lead to higher unemployment, while the wider climate of uncertainty could encourage businesses to pull back on investment, creating another brake on the economy. In other words: don’t get too excited about that cheaper mortgage just yet.

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People are seated in a parliamentary chamber with wooden interiors and green seats. A person is standing and speaking, while others listen. A large screen displays the text "The Bulletin" on the left side.
Hana-Rawhiti Maipi-Clarke stands during the first reading of the Treaty Principles Bill in November 2024. (Photo: Getty Images)

The BulletinApril 11, 2025

PM skips historic debate as Treaty principles bill voted down

People are seated in a parliamentary chamber with wooden interiors and green seats. A person is standing and speaking, while others listen. A large screen displays the text "The Bulletin" on the left side.
Hana-Rawhiti Maipi-Clarke stands during the first reading of the Treaty Principles Bill in November 2024. (Photo: Getty Images)

With protests in the gallery, a projectile thrown and an MP ejected, the second reading of the controversial bill ended in a resounding defeat, writes Catherine McGregor in today’s extract from The Bulletin.

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Disruption, then defeat

In a parliamentary sketch optimistically titled ‘The last day we’ll ever have to talk about the Treaty principles bill’, The Spinoff’s Lyric Waiwiri-Smith paints a vivid picture of a remarkable day in parliament. As widely predicted, the House – except for Act and its 11 votes – united against the bill, ending its journey in a two-hour debate that managed to be both fiery and strangely anticlimactic. Act leader David Seymour had barely begun his speech when a protester in the public gallery was removed for yelling in te reo Māori, prompting Speaker Gerry Brownlee to ask, “Where are the police?” and declare the outburst “completely unacceptable”. Earlier, an object believed to be a vape was thrown at Seymour, narrowly missing him.

The biggest commotion inside the chamber came from Labour’s Willie Jackson, who was ejected for refusing to apologise after calling Seymour “a liar”. In a defiant and emotional speech, Te Pāti Māori MP Hana-Rāwhiti Maipi-Clarke revisited the spirit of her headline-making haka from the first reading. “The real problem is that this institution, this House, has only ever recognised one partner, one culture, one language from one Treaty,” she said. Māori “had two choices, to live or to die,” she said. “We chose to live.”

Hipkins goes on the offensive

Following Seymour’s speech, the leader of the opposition rose to speak. In what Spinoff parliamentary reporter Joel MacManus said “might be the best speech of Chris Hipkins’ career”, the Labour leader talked about the importance of Te Tiriti o Waitangi and slammed National and NZ First for their role in allowing the bill to exist. “This is a grubby little bill, born of a grubby little deal,” he began. “This bill will forever be a stain on our country.” He praised the coalition of New Zealanders who had mobilised against it, and issued a scathing assessment of National’s conduct: “Not one National MP should walk out of this debating chamber today with their head held high, because, when it comes to this debate, they led nothing, they stopped nothing, and they stood for nothing.”

National’s Paul Goldsmith defended the government’s decision to allow the bill to a second reading, saying, “None of us got what we wanted, that is life under MMP. Our country is not so fragile that we can’t withstand a debate about the role of the Treaty.” He described Hipkins’ attack, and others like it, as “just froth and spray”.

The Luxon-shaped hole

As the opposition turned its fire on the government, one absence loomed large. Prime minister Christopher Luxon did not attend the debate, telling reporters earlier in the day that he had a pre-scheduled “series of engagements” in Auckland. Speaker Brownlee repeatedly shut down attempts by Jackson to point out Luxon’s absence, in line with parliamentary rules prohibiting references to non-attendance. But as NZ Herald’s Thomas Coughlan noted (paywalled), the lack of presence from nearly all of National’s front bench – with the exception of Paul Goldsmith and, briefly, Erica Stanford – made the point for him. “Nearly every Opposition MP showed up to the debate, but looked across the chamber only to find themselves facing a row of green leather.”

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Joel MacManus
— Wellington editor

Trading treaty principles for trade policy

So where was the PM? While Parliament debated the country’s founding document, Luxon was in Auckland making calls to global leaders about Donald Trump’s flailing trade war. Earlier, he had given a speech at the Wellington Chamber of Commerce defending open markets, reports Coughlan (paywalled). Luxon used the example of Muldoon-era protectionism to illustrate why free trade is the much better path. The policies of that time “were a mistake that required years of difficult choices and careful recovery,” he said. “New Zealanders paid the price then. I don’t intend for them to do so again.” Whether voters will accept his free trade efforts as justification for missing one of the most consequential debates of the parliamentary term remains to be seen.

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