US to impose 15% tariffs on goods from New Zealand

US to impose 15% tariffs on goods from New Zealand

New Zealand exporters may face a significant increase in tariffs as the United States prepares to raise its baseline tariff rate. Trade Minister Todd McClay has indicated that the US tariff on Kiwi products could rise to 15% from Friday, although this has not been officially confirmed [1].

Since April 5, American importers of New Zealand products have been paying a 10% universal tariff on all goods, plus a 25% rate on steel and aluminium. However, US President Donald Trump has threatened to impose much higher "reciprocal" tariff rates on some countries, with a 15% or 20% baseline for those countries which have not struck deals with the US [2].

McClay stated that trade officials in Washington had informed New Zealand diplomats that the 10% rate was still the base rate but that it could change without notice. He noted that while a 15% tariff would not be welcome, New Zealand exporters had adjusted well and would be able to cope with the increase [1].

The uncertainty surrounding trade policy remains a significant challenge for exporters and their customers, making it difficult to set prices or forecast demand. However, some businesses have reported stronger demand for their products as the NZ-US trade relationship is seen as more stable and the tariff is lower than competitors [1].

The Reserve Bank of New Zealand predicts that weaker global growth due to tariffs will reduce demand for Kiwi exports and lower the price of imports into New Zealand. However, this is occurring against a backdrop of already strong export prices, particularly for dairy and beef, which may allow for lower interest rates [1].

The opening of a standalone FBI office in Wellington by the United States also underscores the strengthening of the US-New Zealand partnership, particularly in countering China's influence in the Pacific region [3].

References:
[1] https://www.interest.co.nz/economy/134473/tariffs-facing-new-zealand-exporters-could-be-lifted-15-donald-trumps-window-trade
[2] https://www.nzherald.co.nz/nz/politics/donald-trumps-tariff-deadline-expires-today-trade-minister-todd-mcclay-fronts-media/GGMK3MNPEFDKDMTDSPNU74AWIY/
[3] https://www.aol.com/news/us-fbi-opens-office-zealand-030910026.html