FAQs

US Tariffs

 

What was announced on 2 April?

On April 2 (US time) US President Trump signed Executive Order 14257(external link) on reciprocal tariffs, that means that New Zealand goods exports to the US are now subject to an additional 10% tariff on top of the US's current 'MFN' tariff rates. 
 
There are currently some exceptions to this:

For details of what tariffs apply to each product/ tariff line, refer to the Tariff Finder(external link).

Any information you feel comfortable sharing on how your business is impacted is valuable to us. Please get in touch to share this information, ask questions or share your views by emailing us.exports@mfat.govt.nz

 

Are the 10% tariffs additional to the other tariffs on steel and aluminium and their derivatives?

No, products covered by other US tariff increases, such as steel(external link) products and their derivatives and aluminium (external link)products and their derivatives are exempt from the additional 10% tariff because they already face a higher additional tariff.

On 4 June (NZT) President Trump signed a Proclamation(external link) (and released and accompanying Fact sheet(external link)) doubling tariffs on US imports of steel and aluminium to 50%.

US Customs and Border Protection have released further guidance, including:

MFAT's Tariff Finder(external link) has been updated to reflect the above.

For more detail see our Market Intelligence report(external link).

 

Do any of the US announcements on tariffs apply to services or digital exports?

The US’ tariff announcements do not apply to services trade. 

 

Where can I find out what tariffs the US is charging?

Tariff Finder | New Zealand Ministry of Foreign Affairs and Trade(external link)

 

What exemptions from additional tariffs are there?

  • Currently, products, including lumber, copper, semiconductors, and pharmaceuticals, certain critical minerals, and energy and energy products, listed in Annex II(external link) of the April 2 Executive Order are exempt from the additional 10% tariff, plus the additional semiconductor-related products specified by tariff code in Presidential Memorandum of 11 April(external link), ‘Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended’. (Please note that additional sectoral tariffs may be applied to these goods in future, following the completion of national security investigations currently under way).
  • Separately, certain US government procurement may be exempt from tariffs, as set out in Chapter 98 of the US Tariff (Section VIII, page 32-33(external link)). 

 

Where does the US publish all these documents?

Executive Orders and Proclamations usually appear on the White House website(external link) first. Some are accompanied by a ‘Fact Sheet’(external link).

Executive Orders are subsequently then published on the Federal Register(external link). 

 

What is the US’ approach to country of origin when inputs from multiple countries are involved?

We understand that US Customs and Border Protection (CBP) is the US agency responsible for determining the country of origin of items imported into the US.  CBP uses non-preferential rules of origin (ROO) to determine the origin of goods imported from countries with which the United States has most-favoured-nation (MFN) status. A key principle used in non-preferential ROO cases is "substantial transformation," which means the country in which the last substantial manufacturing or processing, deemed sufficient to give the commodity its essential character took place. Since no U.S. laws specifically govern non-preferential ROO, these determinations are made by CBP primarily on a case-by-case basis using CBP's own rules and precedents.

More information can be found in this NZTE article(external link)

 

What changes has the US made to de minimis tariff exemption for low-value shipments?

There have been no changes to shipments of low value/ de minimis goods from New Zealand - these are still eligible to enter the US duty free if valued at under US$800. 

However, the US has removed the de minimis exemption for Chinese goods since 2 May, and instead, a 54% tariff (or a US$100 fee) applies per shipment. For details, see the Executive Order issued on 2 April(external link), revised on 8 April(external link), 9 April(external link) and 12 May(external link) (section 4). 

The orders state that the US$800 de minimis exception will no longer apply to “products of the PRC… including international postal packages sent to the United States through the international postal network from the PRC… which enter the United States from 2 May 2025".

 

Low-Value postal shipments of Chinese goods (including Hong Kong): Duties apply as follows:

   Arriving in the US 
from 14 May
Ad Valorem
(% of the value of the goods)		 54%
OR  
Specific Duty 
(set fee per postal shipment)		 US$100 per postal shipment

NB: Each postal/ courier company is able to choose whether to apply the 54% or the US$100 fee. This applies on a uniform basis, for all shipments. 

 

My product will have a tariff applied. Who can I talk to?

NZTE has established Talking Tariffs(external link) – which includes information, resources, and events to help exporters understand what these changes mean for their business. Additionally, exporters can also register any other trade barriers experienced when exporting to MFAT’s Trade Barriers (external link)website, or contact MFAT for support via the Exporter Helpline (0800 924 605) or at us.exports@mfat.govt.nz. We also encourage exporters to sign up to our Market Intelligence Report(external link)s for updates on developments in international trade.

 

How is the US calculating the tariffs?

  • US Customs and Border Protection (CBP) Information Article number 000001126 from 2024 states: 
    • “Duty is not assessed on Cost Insurance Freight (CIF) charges. U.S. Customs and Border Protection (CBP) value is determined based on the "Price Paid" or "Payable" for the goods, which is usually on the bill of sale or invoice and bill of lading as the Freight On Board (FOB) price.
      The CIF price, which is the price paid for the goods including freight and insurance, is not the value to declare for CBP purposes.”
  • Therefore, as far as we are aware, the new 10% tariff being an ‘ad valorem’ rate, will be calculated on the FOB sale price of the goods – that is the price just for the goods in a state ready to be exported, with all international freight etc excluded.  Freight costs are not subject to this tariff, but will still be subject to any other taxes that they are currently subject to, such as Federal taxes.
  • For this reason, exporters who invoice on a CIF or CFR basis may find it beneficial if their invoicing clearly delineates between the cost of the goods and the cost of the freight/insurance.

 

What is a section 232 investigation, and what ones are currently under way?

  • A Section 232 trade investigation is conducted under the US Trade Expansion Act of 1962 to determine whether imports of certain goods threaten national security. The investigation is initiated by the Secretary of Commerce and includes a comprehensive review of factors like overcapacity, dumping, and illegal subsidies. If the investigation finds that imports pose a threat, the President can impose tariffs or other trade restrictions to protect national security.
  • The Act specifies that Section 232 investigations must be completed, and a report submitted to the President within 270 days of the investigation being initiated.
  • There are currently a number of section 232 investigations under way:
    • Copper
    • Timber
    • Processed critical minerals
    • Pharmaceuticals and pharmaceutical ingredients
    • Semiconductors and semiconductor-manufacturing equipment
    • Trucks
    • And most recently, commercial aircraft, parts and jet engines

 

 Are any countries exempt from the 10% tariff?

  • Certain goods from Mexico and Canada are exempt from the 10% tariff
  • Specifically, goods that meet USMCA rules of origin provisions continue to be eligible to enter the US market duty-free under the Agreement 
  • Canadian and Mexican goods traded outside the Agreement (i.e. do not qualify under the USMCA Rules of Origin or do not claim the USMCA preference) are subject to an additional 25% tariff, plus the US’s standard ‘MFN’ tariff. 

 

Has the US put tariffs on movies made outside of the US?

  • No, there are currently no tariffs on movies made outside of the US. 

 

What has the UK signed with the US and what does this mean for New Zealand?

  • On 8 May 2025, during a press conference in the Oval Office, President Donald Trump, on a phone call with UK Prime Minister Keir Starmer, announced the two countries had reached a “trade deal.” This was the first deal announced since President Trump announced reciprocal tariffs on 2 April. Full details of the deal are not yet available, and both leaders acknowledged it has yet to be finalised. Both the US(external link) and the UK(external link) have released high-level details of the deal, with specific sectors covered including beef, ethanol, autos, steel and aluminium, and airplane engines.

 

What have the US and China announced?

  • On 12 May, the US and China agreed to reduce additional ‘reciprocal’ tariffs from the high level of 125% which they had each recently set for what is being described as a 90-day “pause” – through to mid-August.
  • Since 14 May, the US now applies a 30% additional tariff on most imports from China (consisting of 10% ‘reciprocal’ tariff, plus a 20% ‘fentanyl’ tariff), and China will apply a 10%  additional tariff on most imports from the US (plus an additional 10% or 15% tariff on specific sectors responsible for approximately one quarter of China’s imports from the US, imposed in response to the US’s ‘fentanyl’ tariffs). These tariffs are additional to each side’s standard ‘MFN’ tariffs.
  • In addition to the tariff reductions, China agreed to “suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025”. 
  • The Agreement commits both sides to “establish a mechanism to continue discussions about economic and trade relations”, led on the US side by Secretary of Treasury Scott Bessent and US Trade Representative Jamieson Greer, and on the Chinese side by Vice Premier He Lifeng, with participation by Li Chenggang from China’s Ministry of Commerce (MOFCOM). 

What is a trade barrier?

Trade barriers take many forms, and may differ depending on whether you export goods or services. A trade barrier is any rule, administrative procedure or other government intervention that makes it slow, costly or difficult to export to a particular market. Sometimes trade barriers exist for good reasons - for example, regulations that protect public health or the environment.

In other cases, we may be able to reduce, resolve, or prevent barriers, especially where rules:

  • are not transparent or clear
  • are overly restrictive
  • are unevenly applied or have been introduced to unfairly advantage local industries
  • are inconsistent with trade rules

What are some examples of common trade barriers?

Common examples include:

  • customs procedures
  • requirements for goods to be locally produced
  • requirements to use local assets, components or workers
  • quantity restrictions (such as quotas)
  • difficulty enforcing international rules and regulations
  • poor protection of intellectual property rights
  • licensing requirements
  • limitations on access to key infrastructure
  • restrictions on foreign entry or movement of people
  • data storage requirements
  • privacy requirements
  • local presence requirements
  • taxes that favour domestic over foreign firms
  • restrictions on investment
  • qualification requirements
  • price controls
  • requirements about company directors
  • procurement rules
  • subsidies
  • product labelling requirements
  • testing, inspection and certification procedures
  • sanitary, phytosanitary or technical regulations and standards.

How long will it take for my enquiry to be addressed?

We aim to provide an initial response to each enquiry within 48 hours. The timeframe for tackling the particular trade barrier that you have identified will depend on the type of trade barrier and also on the willingness of the trade partner to resolve it. Some trade barriers can be resolved very quickly, while others can take many years to overcome. Occasionally, despite New Zealand’s best efforts, a trade barrier cannot be resolved.

I need assistance with my commercial strategy offshore, can you help me?

The Trade Barriers Helpdesk has been set up to deal with governmental barriers to trade. However, New Zealand Trade & Enterprise (NZTE) helps New Zealand businesses to grow internationally by providing access to market knowledge, resources and connections, as well as connections to investors and partners for growth.  NZTE can be contacted via their website.

Which agencies are involved in handling my enquiry?

The Trade Barriers Helpdesk is jointly operated by the Ministry of Foreign Affairs and Trade, Ministry of Business Innovation & Employment, Customs, Ministry for Primary Industries, Education New Zealand, and New Zealand Trade & Enterprise. Once we have examined the particular details of your enquiry, we will determine which of our agencies is best placed to assist you.

What happens to my personal data and confidential information?

Our data privacy statement explains how we will use your personal data and confidential information.

Does the Trade Barriers Helpdesk service cost me anything?

The Trade Barriers Helpdesk is completely free to use, and there is no limit on the number of times you can use it.