New Zealand Exporters Face New 12.5% US Tariff on Most Goods
Summary
New Zealand exporters are subject to an additional 12.5 percent US tariff on most goods from July 24, replacing the previous Section 122 regime. The duty generally applies on top of normal US tariffs, although beef, kiwifruit and other products remain exempt. MFAT has urged businesses to check product-specific tariff lines and reassess pricing and supply-chain impacts.
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New Zealand exporters face a new additional tariff of 12.5 percent on most goods entering the United States after Washington introduced a fresh trade measure under Section 301 of the US Trade Act. The tariff took effect on July 24, replacing the temporary Section 122 duties that had applied to New Zealand exports.
The measure follows a US investigation into whether 60 economies, including New Zealand, have adequately prohibited and enforced restrictions on goods made using forced labour. The United States said the economies covered by the action account for approximately 99 percent of US goods imports.
For New Zealand, the additional 12.5 percent duty will generally apply on top of normal US most-favoured-nation tariffs. This means the final cost for exporters will vary by product and tariff classification. The new Section 301 duties will not stack with existing Section 232 tariffs, however, meaning products already covered by those measures will continue to face the applicable Section 232 treatment instead.
The Ministry of Foreign Affairs and Trade said the New Zealand Government was disappointed with the decision and would continue engaging with the United States over the investigation and resulting tariff arrangements. The ministry has advised exporters to review the tariff treatment for their individual products and monitor official updates through New Zealand’s Tariff Finder.
Several important New Zealand export categories remain exempt from the additional duty. These include beef, kiwifruit and other tariff lines that were previously excluded from the Section 122 measures. The United States has also added several hundred tariff lines to its exclusion list, covering approximately NZ$100 million of New Zealand exports. Around 80 percent of that additional excluded trade relates to animal products used in animal feed and vegetable seeds intended for sowing.
The new tariff structure creates an immediate compliance and pricing challenge for New Zealand businesses selling into the US market. Exporters may need to reassess landed costs, customer contracts, pricing strategies and supply-chain arrangements, particularly where margins are narrow or products compete directly with suppliers from economies receiving lower additional rates.
The development also reinforces the importance of product-level tariff analysis. While the headline rate is 12.5 percent, exemptions, normal US tariffs and other sector-specific measures mean the impact will differ significantly across industries. Businesses exporting to the United States are being encouraged to confirm the tariff line applying to each product before making further shipments or negotiating new orders.