As part of a sweeping revision to its global tariff strategy, the United States has increased tariffs on New Zealand goods from 10% to 15%, effective August 2025.
This move is part of President Donald Trump’s “reciprocal tariff” policy that targets countries running trade surpluses with the US – a figure that, for New Zealand, sits at approximately US$500 million.
Despite previous diplomatic indications suggesting New Zealand would remain at the 10% rate, the decision came from the highest levels of the US administration.
Other countries such as Australia, Chile, and the UK retained the 10% rate by maintaining recent trade deficits with the US, placing New Zealand at a relative disadvantage, especially in agriculture, wine, and horticulture exports.
Recent Developments (7 August 2025)
New Zealand’s chief trade negotiator, Vangelis Vitalis, is currently in Washington DC to engage directly with US officials and express concern over the tariff hike. The recurring theme from his meetings is clear: this decision is entirely surplus based, not linked to broader trade or political relations.
Key Updates:
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De Minimis Exemption Suspended Early
Previously planned for 2027, the De Minimis exemption, which allowed goods under US$800 to enter the US tariff-free, will now be suspended from 29 August 2025. This abrupt timeline shift brings most countries in line with China and Hong Kong, which lost the exemption in April. Implementation guidance from US Customs is still lacking. -
No HS Code Exemptions
Countries lobbying for product-specific exemptions under Harmonised System (HS) codes have so far received no concessions from the Trump Administration. -
Section 232 Tariff Threats
Additional tariff threats remain active, including potential 100% tariffs on semiconductors and 50% on copper. Reviews on pharmaceuticals and timber are still underway, though deadlines appear fluid.
What Exporters Can Do:
New Zealand exporters are encouraged to provide detailed feedback to MFAT, particularly on:
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Whether the 15% tariff can be absorbed or passed on.
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How the change impacts margins and market access.
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Competitiveness against countries with lower tariffs (eg, Australia, Chile, UK).
Contact for Input:
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MFAT: exports@mfat.govt.nz
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ExportNZ (anonymous option): exportnz@businessnz.org.nz
Outlook:
Officials, including Trade Minister Todd McClay, have engaged with US Trade Representative Jameson Greer, but expectations for reversing the decision are low. As the USTR confirmed, the decision stems directly from President Trump, and trade imbalances are now the primary driver.
For now, the message is clear: unless New Zealand can rebalance its trade position, or offer significant concessions (eg, large-scale US purchases), the new 15% rate is here to stay.