From wool to where?

Trump's Tariffs, Neoliberal Mythmaking and the Legacy of Jack Marshall

In a previous post I examined how Trump’s tariff policies may represent a significant shakeup in the structure of the world economy. While Trump talks about wanting to revive American manufacturing and protect jobs, he lacks any kind of coherent economic strategy to enable this. An effective industry policy is not something that can be created overnight - it is often decades in the making.

In the latest Trumpian twist of trade chaos, the US President has once again delayed imposing high tariffs on dozens of countries until August 1, attempting to force them to make ‘deals’ with him. Despite Trump’s vow in April to make 90 trade deals in 90 days, the White House has reached agreements only with the United Kingdom and Vietnam, along with a preliminary accord with China.

But what could Trump’s trade reset mean for the New Zealand economy? I have been considering this alongside a book I read recently: the memoirs of John Ross (Jack) Marshall, the Prime Minister of New Zealand from February until December 1972.

Former New Zealand Prime Minister Jack Marshall

As Deputy Prime Minister in Keith Holyoake’s National Government from 1960, Marshall served as the Minister of Trade and Industry until 1972. He was also New Zealand’s first Minister of Trade.

The following should be regarded as a work in progress. Some points may need to be developed further. I welcome feedback and thoughts from others as I try to get my own thoughts in order.

Tariffs and Industry Policy in New Zealand

From 1882, advances in technology allowed for the export of refrigerated meat from New Zealand back to Britain. As late as the early 1960s, New Zealand remained an agricultural economy, with farm products producing 95 per cent of overseas funds and Britain serving as its main market. Wool remained the leading export earner.