President-elect Trump has pledged to implement tariffs of up to 20% on all imported goods as part of his “America First” economic strategy. Kiwi winemakers are nervously anticipating the potential timing and impact of these tariffs on their industry.
With the U.S. market representing approximately 40% of New Zealand’s wine exports, any adverse effects could be catastrophic for the $800 million industry in the country.
Philip Gregan, the chief executive officer of New Zealand Winegrowers, expressed that there is some nervousness regarding the “hypothetical” tariffs’ impact on businesses.
“But you know, there’s two months to go before the new administration is sworn in. Nobody knows if tariffs will be applied; if they are, how much [or] when—so there’s very little that anybody can do at the moment other than watch and wait to see what happens.”
“It will be a decision ultimately for every individual wine business and for their distribution partners in the U.S. as to how they will manage any tariffs if they are imposed. And that could be months away if it ever happens,” Gregan added.
Tariffs are typically paid by importers but have a direct impact on consumers through higher prices. Trump’s proposed tariffs can lead to increased costs for consumers and, according to analysts, could potentially alter purchasing habits.
New Zealand’s wine industry has cultivated the U.S. market over the last 20 years and achieved significant success. Gregan highlighted the industry’s commitment to continuing this growth in the coming years.
Gregan also mentioned that there are other potential markets for New Zealand growers to explore in the long run, although this process will require time.