New Zealand has been puzzled by the United States' announcement of a new 10% baseline tariff on all imported goods into the US.
This was part of President Donald Trump’s sweeping announcement on Wednesday.
New Zealand said the Trump administration’s claim that it imposed a 20% tariff rate on US goods does not add up.
According to New Zealand’s trade minister, Todd McClay, roughly 75% of goods from the US into his country have low or no tariffs imposed, while tariffs levied on US imports is about 1.9% on average.
He said that his country applies a much lower tariff rate for America's exports into New Zealand, “I’ve asked officials to clarify, but we don’t have a 20% tariff,” he told the media on Thursday, hours after President Trump made his announcement.
As it stands, the US is New Zealand’s fastest growing export market.
It became America's second largest in 2024, ahead of Australia and China.
The country’s exports to the US surpassed NZD $9b in 2024, driven by meat, dairy and wine.
The new tariff could mean a NZD $900m bill for New Zealand exporters.
McClay said the imposition of tariffs was not unexpected but it would have an impact on New Zealand exporters.
He added, “Tariff rates anywhere upon New Zealand exporters is not a good thing ... but New Zealand exporters are very nimble, and they are very able and very competitive.
“New Zealand would not be looking to retaliate with tariffs on the US.
“That would put up prices on New Zealand consumers, and it would be inflationary.”
