Luxon Embarks on High-Stakes Diplomacy in Asia

Prime Minister Christopher Luxon departed for Asia today, embarking on a significant diplomatic mission that could pave the way for crucial meetings with global leaders. His agenda includes attending the East Asia Summit (EAS) in Malaysia at the beginning of the week, followed by the APEC leaders’ meeting in South Korea later on. A potential meeting with U.S. President Donald Trump is on the horizon, alongside Chinese President Xi Jinping, although Trump has hinted that his meeting may be subject to cancellation.

These summits come in the wake of Trump’s recent introduction of the Liberation Day Tariffs, which imposes a 15% tariff on a wide range of New Zealand goods. This development has triggered discussions around trade balance, particularly after New Zealand experienced a 0.9% contraction in its economy in the second quarter of this year.

Luxon expressed a willingness to connect with Trump during his trip, whether through a formal meeting or an informal discussion. Reflecting on their past interactions, Luxon noted their “very good connection” from when Trump was previously in office.

The tariffs have posed challenges for New Zealand’s exporters. Despite this, Luxon highlighted a 6% increase in trade with the U.S. in the year leading up to June 2025, indicating that exporters have adapted well by shifting products to other markets.

Luxon stated, “We’ve been able to, by and large, pass through those tariffs onto American consumers to pay, whether you’re in red meat, wine, or dairy, which are our three big exports into the U.S.” He also mentioned ongoing discussions between Trade Minister Todd McClay and his U.S. counterpart, Jamieson Greer, regarding the tariff arrangements.

Importance of U.S.-China Dialogue

The anticipated Trump-Xi meeting at APEC in Gyeongju is expected to dominate discussions. This encounter marks their first meeting in over six years and occurs amidst escalating trade tensions between the two countries. Luxon characterized the potential dialogue as “very positive,” emphasizing its significance for global trade and the economy.

He noted that New Zealand would continue to collaborate with allies such as Australia, Singapore, and Canada to uphold a rules-based international trading system in light of the ongoing tariff conflicts. He remarked, “We believe in the rules-based system and will continue to push that agenda pretty strongly.”

Luxon is also aiming to meet with Xi and Canadian Prime Minister Mark Carney during the summits, although specifics are still being finalized. He mentioned that he has been proactive in discussing trade dialogues with leaders from the European Union and ASEAN regarding the broader implications of U.S. tariffs.

Shifting Focus to the Indo-Pacific

As New Zealand seeks to diversify its trading relationships amid a fragmented global economy, Luxon pointed to a notable 11% growth in exports to Southeast Asia. He underscored the importance of the region, stating, “It’s the world’s most economically dynamic region with nine of our top ten trading partners in the Indo-Pacific.”

The Prime Minister expressed a commitment to strengthening ties in the region, contrasting this focus with what he perceived as the previous government’s overemphasis on Europe. He affirmed, “We have prioritised the Indo-Pacific region and building out those relationships in Southeast Asia, Northeast Asia, India, and the Pacific.”

The EAS summit will also address security concerns, particularly the ongoing civil war in Myanmar, a member state.

As Prime Minister Luxon engages in these significant diplomatic discussions, updates on his activities will be available through local media outlets, ensuring that the developments are closely monitored.