Trump has announced a 10% tariff on all New Zealand goods entering the United States as part of his “Liberation Day” initiative to rebalance global trade.
Speaking from the White House Rose Garden, Trump declared the new tariffs a necessary correction to what he described as decades of unfair treatment. “They do it to us, we do it to them,” he said, holding up a chart that included a disputed claim: that New Zealand imposes a 20% tariff on U.S. imports.
That assertion has baffled economists. “My best speculation here is that [it] is probably a combination of the GST rate plus we do have some tariffs against the US in some products set at a minimum WTO agreed level,” said Westpac chief economist Kelly Eckhold. “What I’m confused about is why they say Australia is 10 percent. They also have a GST, and similarly the United Kingdom is assessed at 10 as well and they have a value-added tax.”
New Zealand exports to the U.S. were valued at $9 billion in 2024, meaning local exporters now face an estimated $900 million cost from the blanket tariff. Meat and dairy sectors are likely to be among the hardest hit, with the U.S. being a key market—$2.6 billion in meat and $883 million in dairy exports last year.
Trump’s new tariff structure includes harsher penalties for other trading partners—34% on China, 20% on the European Union, and up to 49% on Cambodia—drawing comparisons to the aggressive trade policies of his first term. The administration insists the measures are necessary to restore U.S. manufacturing, though critics warn of higher consumer prices and global economic disruption.
Markets reacted swiftly: U.S. stocks dipped 2% in after-hours trading, and volatility is expected to persist as trading partners weigh retaliatory steps.
Former diplomat Stephen Jacobi summed up New Zealand’s position: “Unjustified, painful, but at a lower level of pain than expected.” Still, the move raises urgent questions about the future of trade relations and the global economic order as Trump’s second-term agenda takes clearer shape.