NZ Prime Minister Christopher Luxon says tariffs are not the solution as tensions rise between the United States and the European Union over Greenland.
Speaking after his State of the Nation address, Luxon warned against countries imposing tariffs on each other, saying it could quickly turn into a harmful cycle.
“We don’t want to see a downward spiral of tariffs and tit-for-tat tariffs. That’s not acceptable,” Luxon said.
The comments come after US President Donald Trump threatened to impose an extra 10% tariff on eight European countries. This followed opposition from those countries to Trump’s idea of buying or annexing Greenland.
In response, the European Union is reportedly considering retaliatory tariffs worth around €93 billion (about NZ$187 billion) — a move that could significantly impact global trade.
Luxon said New Zealand’s priority is stability, and it wants to see strong, healthy relationships between the US and Europe.
“We believe issues should be resolved through discussion, debate and dialogue,” he said.
He added that if the US has genuine concerns about security in the Arctic region, those concerns should be talked through openly rather than handled with trade penalties.
When asked whether the EU was right to consider retaliatory tariffs, Luxon said that decision was up to the EU, and New Zealand would not interfere.
Other global issues
Luxon also shared concerns about events unfolding in Iran, describing them as “deeply worrying”, especially reports of governments using force against their own citizens.
He was also questioned about the United States’ action in Venezuela, where President Nicolás Maduro was captured. Luxon said New Zealand does not recognise Maduro’s government, calling it illegitimate, but stressed that all countries — including the US — must follow international law.
“It’s up to every country to show they are acting within international law,” he said.
Luxon explained that he had not commented earlier on these international developments because Foreign Minister Winston Peters had already clearly outlined New Zealand’s position.
Meanwhile, Labour leader Chris Hipkins criticised the government, saying it should have been more visible and more principled on global issues.
Hipkins said New Zealand has a strong history of standing up for international rules and laws, and should continue doing so.
Labour also condemned the US action in Venezuela, calling it a breach of international law, warning that taking such action without global approval sets a dangerous precedent.Tin Bureau