New Zealand Prime Minister Christopher Luxon stated that U.S. tariffs had ‘shocked’ financial markets, though he welcomed Donald Trump’s decision to pause the highest levies, excluding those on China. Speaking in Wellington, he warned that the broader consequences of a world retreating from trade and facing economic uncertainty would be far more significant.

Luxon highlighted the potential role of countries within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which represents around 15 percent of global economic activity, in promoting free trade. He suggested that collaboration between CPTPP members and the European Union could champion rules-based trade and lead to specific commitments on how such support is implemented.

‘My vision includes actions to prevent export restrictions and ensure any retaliatory measures align with existing rules,’ Luxon said.

He emphasized that collective action by a significant portion of the global economy would be a crucial step toward safeguarding free trade and protecting supply chains. The CPTPP, a trans-Pacific trade agreement, includes 12 member nations: Canada, Mexico, Chile, Peru, Malaysia, Japan, Brunei, Vietnam, Singapore, Australia, New Zealand, and, most recently, the United Kingdom