US to Raise Blanket Tariffs on New Zealand Exports

The Federal government of the United States is expected to increase blanket tariffs on all New Zealand exports from 10 percent to 12.5 percent. The move follows a March ruling by the Supreme Court of the United States, which determined that tariffs imposed under the International Emergency Economic Powers Act exceeded executive authority. Consequently, the U.S. is utilizing Section 301 regarding unfair trade practices to maintain trade pressure, specifically targeting forced labor-produced goods criteria across 60 major trading partners.

New Zealand Trade Minister Todd McClay stated that the hike is not unexpected, as interim tariffs expire on July 24. While the increase affects New Zealand due to the absence of a bilateral trade deal, the country may remain more competitive than 16 other partners, including Japan and Australia, who face additional Section 301 cases over high trade deficits.

McClay addressed the situation during the Future of Investment and Trade Partnership ministerial meeting in Auckland. Despite the looming tariff rise, he noted that New Zealand exports to the U.S. grew by up to 4 percent over the last 12 months. During the summit, McClay explored free trade negotiations with Swiss State Secretary Helene Budliger Artieda and noted that a food and fuel agreement with Singapore, signed by Prime Minister Christopher Luxon, takes effect on July 17, 2026.