News

US President Donald Trump signed an executive order for new tariff rates on a wide swathe of US trading partners to go into effect in seven days (8 August 2025). The new tariff rate for New Zealand - 15% - is an increase from the “baseline” 10% that Trump announced during his “Liberation Day” event on April 2.

Key facts: 

• New Zealand now faces a 15% additional tariff rate. On first reading this would appear to come into force in seven days (8 August 2025). 
• Australia remains at 10%, and the UK also at 10% due to their earlier agreement.
• MFAT thinks this new rate has simply been applied to countries with a trade surplus with the US (we have one of around $500million which is modest) 
• In a Radio NZ interview just now, the Minister has signalled that he is engaging with US contacts and has sought urgent advice from Treasury as to the implications for NZ. 

Read the official announcement here, and the factsheet here

UPDATE 4 AUGUST

Major Developments

• Minister McClay confirms that he spoke with US Trade Representative (USTR) Jameson Greer to register New Zealand’s disappointment with the increased tariff.
• Vangelis Vitalis, New Zealand’s top trade official, is already on the way to Washington D.C. for discussions with his US counterparts.
• Minister McClay is expected to travel to D.C. and to meet with USTR Greer in the next week or two.
• USTR Greer has made it clear that the decision came from Donald Trump on the basis that if the US had a trade deficit with a country, then that country would be hit with a 15 per cent tariff, regardless of any other factors.

ExportNZ’s Thoughts

• We have low expectations about our officials or the Minister’s chances of overturning the increased tariff.
• As the USTR said, this was a decision made at the very top, and regardless of what the USTR may have said to our officials prior to this happening, what Trump says, goes.
• We compete with Australia, UK, and South American products in agricultural exports, so there may be a negative impact on the competitiveness of New Zealand Agri exports.
• If we want lower tariffs, it will come down to balancing the trade relationship – this could be in the form of a large purchase of aircraft or ships. Or, reducing the amount of exports we send to the US.
• Australia recently did this, posting a trade deficit with the US in the month of April.