US Removes Additional Tariffs on Key New Zealand Agricultural Exports

Minister for Trade and Investment; and Agriculture, Todd McClay, has cautiously welcomed the United States announcement this week removing the additional reciprocal tariffs on a range of New Zealand agricultural products, including beef, offal, and kiwifruit.

These products represent around 25 per cent of our exports to the United States, worth approximately NZ$2.21 billion annually.

The US remains an important trade partner for New Zealand and the decision to lift these tariffs is a step in the right direction and will be welcomed by exporters who have faced months of uncertainty and higher costs, Mr McClay says.

The additional tariffs were first introduced in April at 10%, and increased to 15% in August based on New Zealand running a modest trade surplus with the US.

Returning to the pre-reciprocal tariff access we had before April provides some much-needed stability for our farmers and processors. We estimate this is a saving of around $330 million in additional tariff duty.

However, this is only a partial rollback. Tariffs remain in place on other important New Zealand products, and the broader reciprocal tariff framework continues to create cost and uncertainty for our exporters.

New Zealand has a balanced and complementary trade relationship with the United States. US goods imported by New Zealand only face on average a 0.3% tariff rate with very few restrictions.

I have spoken directly with my US trade counterpart USTR Jamieson Greer a number of times over the last few months and will continue to make the case that New Zealand’s trading relationship with the US is balanced and that the additional reciprocal tariffs on other New Zealand exports should also be removed.

Note to editors: Main New Zealand exports covered by the tariff reduction announcement: Beef, prepared meats, offal, kiwifruit, misc. fresh fruit, berries, avocados.