The heavily-trade reliant nation hit with baseline 10 per cent tariffs last week, which Treasury costed at around $NZ900 million ($A828million) or 0.2 per cent of Kiwi GDP.
Mr Luxon said that was not his biggest concern from the US action.
"The second order consequences of a region and a world retreating from trade and increasingly uncertain about its economic future will be more significant," he said in a speech in Wellington on Thursday morning.
"For as long as I am prime minister, New Zealand will keep making the case for trade as a cornerstone of our prosperity."
Mr Luxon said he would discuss the trade tit-for-tat with Indo-Pacific leaders this afternoon and European leaders in the evening.
He has not said who he will be speaking with, but will release the list at day's end.
The former Air New Zealand chief executive suggested collective action between the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) trade bloc and the European Union could act as a bulwark against US-initiated action and China's retaliation.
The CPTPP is a 12-nation trade region including Australia, Canada, Chile, Mexico, Peru, the United Kingdom, New Zealand and several Asian nations.
"You've got 15 per cent of world trade tied up in the CPTPP, there's a real opportunity for us to coordinate and to work together," he said.
"One possibility is that members of the CPTPP and the European Union work together to champion rules-based trade and make specific commitments on how that support plays out in practice.
"My vision is that includes action to prevent restrictions on exports and efforts to ensure any retaliation is consistent with existing rules.
"Collective action, and a collective commitment, by a large portion of the global economy would be a significant step towards preserving free trade flows and protecting supply chains."
The EU, which already has a free trade deal with NZ, has now proposed to resume stalled talks with Australia in the aftermath of the Trump tariffs.
Mr Luxon is travelling to Europe at the end of the month in a trip expected to take in bilateral talks with the UK and Anzac Day commemorations in Gallipoli.
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