Trump Removes Agricultural Tariffs on Australia and New Zealand
President Donald Trump signed executive orders removing baseline tariffs on agricultural imports from Australia and New Zealand to combat rising US grocery prices and supply shortages.
President Donald Trump issued executive orders removing baseline tariffs on agricultural imports from Australia and New Zealand, citing national security and economic strength. The rollback affects Australian beef, coffee, tea, bananas, oranges, tomatoes, and fertilizers, and removes tariffs on more than $2 billion of New Zealand exports, primarily beef and kiwifruit.
The decision follows domestic pressure in the United States regarding high grocery prices and supply shortages. In Australia, the move aligns with the Australia-US Free Trade Agreement and follows the Australian government's July decision to lift biosecurity restrictions on US beef imports. For New Zealand, the reversal restores a competitive level playing field with Australia, although a 15 percent tariff remains on lamb exports.
Trade officials and industry leaders from both nations welcomed the move, though some US critics characterized the reversal as an admission that the administration's trade war increased costs for consumers. Representative Richard Neal argued that the tariffs had previously contributed to inflation and contracted manufacturing.