The United States has imposed additional tariffs on 60 economies accounting for 99 percent of US goods imports.
This followed the United States Trade Representative (USTR)’s investigation under Section 301 of the Trade Act of 1974 into forced labour.
Under the final determination, New Zealand was among 41 economies subject to an additional tariff. For 38 economies, this will be applied on top of the United States' normal Most Favoured Nation (MFN) tariff rates.
New Zealand will be subject to an additional 12.5 percent tariff on most exports to the United States from the 24th of July 2026, replacing the expiring Section 122 tariff regime.
The New Zealand Government was disappointed with the outcome and will continue to make the case for better treatment with the United States.
Economies that have entered into Agreements on Reciprocal Trade (ART) with the United States, or otherwise committed to forced labour import bans, received a lower ten percent tariff rate.
As with the previous Section 122 tariff regime, several New Zealand export products remain exempt from the additional duties, including beef, kiwifruit, and other tariff lines previously excluded from Section 122 duties.
There are new ‘scope limitations’ for certain chemicals, where the exemption only applies if they “are for use in pharmaceutical applications".
In addition, USTR has expanded the list of excluded products, adding several hundred tariff lines. These exclusions cover approximately NZD 100 million of New Zealand exports, with around 80 percent of this trade falling under two tariff lines:
- HS 0511.99.30 (Animal products chiefly used as food for animals or as ingredients in such food, not elsewhere specified) and
- HS 1209.91.80 (Vegetable seeds, not elsewhere specified, of a kind used for sowing)
For New Zealand, the new Section 301 tariffs will be applied in addition to MFN tariffs, consistent with the previous Section 122 and IEEPA tariff arrangements.
However, the new duties are separate from and will not be imposed on top of existing Section 232 tariffs. Products already subject to Section 232 measures will continue to face those tariffs rather than any Section 301 tariff.
Exporters should review affected tariff lines and monitor official guidance, including updates to MFAT’s Tariff Finder, which reflect the new measures.
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