Labour leader Andrew Little also addressed the issue in his State of the Nation speech in Mt Albert today, saying New Zealand would "never" take similar measures to the US.
Instead, this country could be a "beacon to the world", Little said.
Referring to Trump and the rise of the far right in Europe, the Labour leader said: "The places that used to light the world with their progressive thinking - their lights shine
more dimly now.
"Let us never loosen our hold on what makes us who we are. We can set the standard for cooperation, for tolerance, for a government that governs with compassion.
"We can show there's a better path than isolation and bigotry. It's our turn to shine and to lead the way, to be New Zealand at its best."
Race Relations Commissioner Dame Susan Devoy also called for New Zealanders not to give in to bigotry and to stand alongside Muslim New Zealanders.
"So many of us are feeling helpless but the one thing we can do is let our own decision makers know that we will not allow hatred and intolerance to spread and become normalised here at home. Not in our New Zealand."
New Zealand-based Holocaust survivors had told her last week they never thought they would witness a return to politics of hatred within their lifetimes.
"But it's happening," Dame Susan said. "They urged us all to stand up for the rights of refugees, Muslims and minorities targeted by the powerful."
SEVEN COUNTRIES BANNED
Trump's executive order bans travel by those with passports from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.
It was signed on Friday and took immediate effect, leading to chaos and confusion in US airports as people from Arab countries were blocked from entering the country or boarding planes.
Responding to the executive order, German foreign minister Sigmar Gabriel said the United States was going against its Christian value of loving your neighbour.
French foreign minister Jean-Marc Ayrault said taking on refugees fleeing war and oppression was "part of our duties".
Canadian Prime Minister Justin Trudeau offered to take some of the refugees being turned away from the United States.
