Photo: RNZ
Prime Minister Christopher Luxon has repeated his view that there is a trade war playing out between the US and China, despite the foreign minister calling that language "hysterical".
Luxon told Morning Report there is a trade war happening.
"Obviously, if you look at what's happening with respect to the US and China, there is real trade wars and tension going on there," Luxon said.
However, he denies there's any tension between him and Peters regarding the response to the United States tariffs.
"We are very aligned in our approach," Luxon said.
Luxon has spoken with leaders from throughout the Indo-Pacific and European Union to discuss international trade, and how they might be able to work together to take a "like-minded approach" to trade.
But Peters said the phone calls were premature, and Luxon should call him next time.
In Tonga on Friday, he said politicians should "tone down" and wait until they saw and knew what was going on.
"Markets lose their nerve. Share market speculators lose their nerve. Politicians should not lose their nerve, and that's my advice," he told RNZ.
"There's no need to react at this point in time. Let's first find out what we're dealing with, let the dust settle in."
He followed this up on Sunday with a speech in Hawai'i, in which he disparaged the language being used in the current climate.
"In recent weeks, the tendency to hype up a debate about how international trade works into a black-and-white, polarising issue has been unfortunate and misguided," Peters said.
"The use of military language - of a 'trade war', of the need to 'fight', of the imperative to form alliances in order to oppose the actions of one country - has at times come across as hysterical and short-sighted."
Both phrases have been used by Luxon in recent weeks.
Peters said the best course of action was to be cautious, modest, and practical - warning that New Zealand should wait for the dust to settle before making choices it may later regret.
Praising "quiet diplomacy" over "megaphone diplomacy," Peters also warned against picking sides or forming teams.
"We will continue to promote careful, pragmatic, quiet dialogue - aimed at de-escalation and practical problem-solving, rather than premature posturing. That is the Pacific way."
Speaking to media after his speech, Peters said the US knew New Zealand's position.
"The US administration know precisely our views. That's why we went across and saw them. That's why we had these serious talks. And they know precisely what New Zealand's position is, and our great degree of patience whilst they work out their own policies," he said.
Labour leader Chris Hipkins said Luxon and Peters needed to "stop their bickering" and act like a functional government.
"New Zealand needs a steady hand on the tiller to navigate this global situation and having two Coalition leaders play out their infighting in the media is unhelpful and immature," he said.
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