Back in April 2025, the Trump administration set a sweeping range of new trade tariffs, creating a wave of economic uncertainty for exporters across the world.

In April, the tariff for New Zealand was set at the standard 10% rate. But in the latest round of updates to the US trade tariff strategy, the rates have been updated once again – with New Zealand exporters to the US now facing an increased 15% tariff.

Let’s explore what this 15% trade tariff may mean for NZ exporters, and the steps your business can take to reduce and mitigate the negative impact of this additional cost.

How has the Trump administration decided on these new rates?

Under the updated trade tariff strategy, the Trump administration has split the world into three main categories:

1. Those countries where the US has a trade surplus (in other words, where the US exports more than it imports) will pay the base tariff of 10% on all exports
2. Those countries where the US has a trade deficit will pay a 15% on all exports
3. 26 countries which are seen as riskier trading partners by the US will pay more than the 15% tariff. These higher rates range from 18% for Nicaragua to a giant 41% for Syria.How has the New Zealand government reacted to the new tariff?

Despite New Zealand imposing relatively low tariffs on US imports, the Trump Administration has not given any concessions and has applied what Finance Minister, Nicola Willis, has called a ‘very blunt formula’ to decide on a trade tariff rate for NZ-US exports.

The Finance Minister was quoted as saying:

"This is a disappointing development. New Zealand and the US have a deep, long-standing friendship and US exporters already facing much lower tariffs exporting to New Zealand than goods going the other way. On the positive side, we do need to remember the broader context, which is that our exporters continue to do well. New Zealand's exports rose 11.4 percent in the 12 months through June and exports to the US increased 6.3 percent over that period."

5 things you can do to lessen the impact of a higher trade tariff

Having a 15% tariff slapped on your US exports is likely to be challenging for Kiwi exporters. With some NZ small businesses already struggling to balance cashflow and achieve workable margins, an extra 5% on top of the existing tariff could well be a deal breaker.

But all is not entirely lost. There are practical ways to lessen the impact of this trade tariff and to claw back some of the margins that the extended rate will now be eating into.

We’ve highlighted four key ways to reduce the potential impact:

1. Absorb the cost or adjust your pricing:

One option is to absorb a portion of the tariff so your pricing can remain competitive, especially if you export highly price-sensitive products. Getting the balance right between competitive pricing and workable profit margins is essential, however.

Another option is to raise your prices on high-value items where customers are less likely to switch. This helps you claw back some of the margins you’ve lost to the tariff, without losing customers – but make sure your pricing still remains competitive for this premium audience.

2. Diversify into non-US markets:

Reduce your dependency on the US market. Explore other export opportunities in countries where New Zealand has favourable free trade agreements. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), for example, offers preferential access to markets including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the United Kingdom and Vietnam. There are also good export relations with the European Union (EU) under the current NZ-EU Trade Agreement. Cutting the US out of your export strategy may well provide better opportunities for growth with lower or no tariffs.

3. Optimise your supply chain and operations:

If the increased trade tariff is eating into your profit margins, you’ll need to take action to reduce the other drivers of your margins. Review your supply chain to look for potential cost efficiencies. This could involve sourcing raw materials from lower-cost locations, switching to new suppliers or negotiating cheaper deals with your existing suppliers.

In some cases, setting up a final assembly or packaging operation within the USA could be one way to avoid trade tariffs on the finished product.

4. Engage with the NZ Government and trade bodies:

Work closely with agencies like the Ministry of Foreign Affairs and Trade (MFAT) and NZ Customs. These organisations can provide the latest information on tariff changes, offer guidance and advocate on behalf of New Zealand exporters in discussions with US officials.

If you’re currently exporting to the US and are worried about the new 15% trade tariff, please do get in touch with us. We can work though the numbers and help you understand the potential impact on export costs, profit margins and the viability of the US as a market.