Prime Minister Christopher Luxon has called Winston Peters' comments about immigrants racist and "very offensive," but says he still has confidence in Peters as Foreign Minister.

The comments came after an exchange in Parliament on Wednesday. Peters, who leads the NZ First party, told Green MP Lawrence Xu-nan to "go back to your own country" during a debate. He also told Xu-nan: "This is called a democracy, unlike what you're used to."

Speaking at a public meeting in Tauranga, Luxon defended Xu-nan. He said Xu-nan has "as equal right be in that Parliament and as a first class citizen" as Peters. Luxon said Peters is "playing a game" and likened him to overseas politicians known for hardline anti-immigration views — Nigel Farage, Marine Le Pen, Pauline Hanson, and Donald Trump.

Luxon said New Zealand's immigration system is focused on building infrastructure and bringing in high-skill workers, and is nothing like the immigration situations in the United States, England, Germany, or France.

National's campaign chair Simeon Brown went further and called Peters' comments racist outright. ACT leader David Seymour also described the remarks as inappropriate and attention-seeking.

Former Prime Minister Helen Clark, former National leader Don Brash, and the opposition have all said Peters should be sacked as Foreign Minister. Luxon has not done that. When reporters asked what he would do about Peters, Luxon said: "Party vote National."

The meeting was held in Tauranga, a seat National has held since 1938 — except from 1993 to 2005, when Peters himself held it.

Luxon also used the meeting to attack Peters' record. He told the crowd that Peters opposed the China free trade deal, opposed the India free trade deal, and was part of a government that banned oil and gas exploration, which Luxon said caused an electricity crisis in 2024. He also said Peters "put Jacinda Ardern into power and wrecked our economy."

The India free trade deal, finished in December 2025, has been a specific point of contention for Peters. He said the agreement "gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy," according to Reuters.

In New Zealand's system of government, parties sometimes team up to form a coalition — meaning two or more parties share power. Peters' NZ First party is a coalition partner of Luxon's National party. That makes the situation awkward: Luxon has called his own partner's words racist but has not removed him from his job.

The broader context here is that Luxon's answer — "Party vote National" — means he wants voters to decide Peters' fate rather than sacking him himself. That keeps the coalition together and avoids the process that comes with firing a minister. It also lets National appeal to any voters who are put off by Peters' comments. Whether that approach holds depends on whether the pressure from Clark, Brash, and the opposition keeps building or fades as Parliament moves on.

The Foreign Affairs role matters in this situation because Peters represents New Zealand to other countries. His comments about immigrants are now on the public record at a time when trade deals with countries like India are being negotiated.

Luxon's comparison to Farage, Le Pen, Hanson, and Trump was a deliberate choice. He is telling voters that Peters is copying a style of politics from overseas that does not fit New Zealand's immigration situation — and suggesting voters should reject it. Whether that message lands in Tauranga and beyond will shape how this coalition handles the rest of its term.