Trade tariffs dominate the news right now because exporting to the United States is such a big opportunity for New Zealand businesses. Our IT developments, primary goods and artisan products have found success in America. Whatever sector you’re in, it’s vital to understand how tariffs will affect your business. Fortunately, there’s plenty of support available from your Business Mentor and the Government. Read on for simple pointers on how to navigate tariff changes and where you can go if you need more help.
Trade tariffs and FTAs impact your bottom line
A trade tariff is a tax that a country charges on goods coming in from overseas. If you export your products or services to the US, the US Government may add a tariff, which makes your product more expensive for American buyers. Countries use tariffs to protect their own industries, raise money, or sometimes to influence other countries' behaviour.
In contrast, a Free Trade Agreement (FTA) is a deal between two or more countries to make trading easier and cheaper. New Zealand has many FTAs, including the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), which involves the US.
The US tariffs have changed the export landscape
In April 2025, the US introduced a new 10% tariff on most goods imported from New Zealand. This is on top of any existing tariffs and FTAs. Some sectors, like steel and aluminium, face even higher tariffs (up to 25%). A few products, such as pharmaceuticals, semiconductors, and some minerals, were not affected, but these rules can change quickly.
If you sell services or digital products to the US, tariffs usually don't apply, but you should still check for any related regulations or fees. If you export physical goods, your products will likely be more expensive for American buyers now. Plus, if other countries (like China) are involved in making your products, even higher tariffs may apply.
You need to understand how tariffs affect your products
Finding out exactly how the tariffs affect your specific products is crucial. The Tariff Finder tool (www.tariff-finder.govt.nz) shows the US tariffs you’ll face, and the changes included.
Once you know the tariff rates, you can calculate the total cost impact on your products. This will help you make informed decisions about pricing, contracts, and whether certain markets remain viable for your business.
Review your pricing, contracts, and supply chain
If you’re facing new tariffs, you may need to review your pricing and contracts. Decide if you’ll absorb the extra cost, share it with your customers, or adjust your prices. Make sure your contracts clearly state who pays for tariffs and other new costs.
It’s a good time to double-check your supply chain and customs paperwork. Accurate codes, clear country-of-origin details, and correct valuation help avoid delays and extra charges.
Fresh opportunities may open up
The standoff between two of our New Zealand’s biggest trade partners creates gaps for new business or trade. Even businesses that don’t export may find that goods displaced from the US or Chinese markets look for new homes. Staying alert to these shifts can help your business spot and act on new opportunities.
If tariffs make your product too expensive, consider ways to add value or focus on niche markets where you have an advantage. And don't forget to explore other markets where New Zealand has favourable FTAs.
The Government has stepped up to support exporters
The New Zealand Government recognises the challenges these new tariffs create for exporters. The Ministry of Foreign Affairs and Trade (MFAT) has established a dedicated hotline to assist businesses with questions about US tariffs. You can contact them at us.exports@mfat.govt.nz with any questions.
New Zealand Trade and Enterprise (NZTE) is hosting regular "Talking Tariffs" events to help exporters understand the implications of these tariffs. They're running fortnightly drop-in briefings where you can get the latest updates and ask questions directly to officials. These sessions provide valuable insights and practical advice for navigating the new trade environment.
Business.govt.nz is a one-stop shop for free, practical tools, templates, and tips. It brings together information from 24 Government agencies and private sector experts, all designed for small New Zealand businesses. You’ll find easy guides on exporting, tax, compliance, and more.
A Business Mentor can offer practical support and fresh ideas, helping you adapt to changing trade conditions and make confident decisions as you grow your business.
Stay informed and connected
Trade rules change quickly, and staying up to date and connected is essential. Share your experiences with your Business Mentor, the BMNZ team and Government agencies. Your feedback helps in negotiations for better trade terms and target support. The more information they have about real business impacts, the better they can advocate for New Zealand's interests.
Above all, remember that you don’t have to face a world of new tariffs alone. Our team of experienced and dedicated Business Mentors is here for you.
