FAQs

US Tariffs

 

What tariffs apply to New Zealand goods exported to the US?

On 31 July (US time) US President Trump signed Executive Order 14326(external link) that sets an additional 15% tariff on most goods of NZ origin (in addition to the US’s WTO-based MFN tariff). See the Fact Sheet(external link) here.

Some products face additional or alternative “Section 232” tariffs, including certain:

For details of what tariffs apply to any 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 any exemptions or exceptions available?

There are currently some exceptions to the 15% additional tariff:

  • Some products are currently exempt from any additional tariffs, due to ongoing investigations under section 232 of the Trade Expansion Act of 1962, listed here(external link):
    • semiconductors; 
    • pharmaceuticals and ingredients; 
    • processed critical minerals & derivatives; 
    • commercial aircraft and jet engines;
    • polysilicon and derivatives;
    • unmanned aircraft (drones) & parts; and
    • wind turbines, parts & derivatives.

 

What is tariff stacking?

Tariff stacking means multiple duties are applied sequentially to the same product — often without caps — significantly increasing the total landed cost.
For example, a New Zealand origin product may face: 

  • a Most Favoured Nation (MFN) tariff (e.g. 3.5%);
  • New Zealand’s 15% baseline reciprocal tariff; 
  • A sector specific tariff (e.g. 50% tariff on the copper content); and
  • anti-dumping or countervailing duties, if applicable.

 

Are the 15% tariffs additional to the other sectoral tariffs, e.g. 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 15% tariff because they already face a higher additional tariff.

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

Please note that under the expanded Section 232 regime:

  • Products imported into the US on specified tariff lines containing steel, aluminium and copper derivatives are now subject to a 50% tariff on the value of the metal content, on top of any existing MFN tariffs. 
  • The remainder of the product’s value will be subject to a reciprocal tariff under the International Emergency Economic Powers Act (IEEPA), which is 15% for products of New Zealand origin, on top of any existing MFN tariffs.

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

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

 

How do I calculate what tariff I pay for section 232 tariffs on steel and/or aluminium?

NZTE has published some guidance on how exporters might want to approach export documentation to help ensure they are not being overcharged. Access on their website here(external link).

 

What are trans-shipment charges and how do they apply?

Trans-shipment charges(external link) may apply if goods are routed through a third country.

If the US suspects trans-shipment is used to disguise origin(external link) (e.g. routing goods from a country other than NZ through NZ), the goods may be re-classified as originating from the high-tariff country. CBP may then impose an additional 40% duty, a fine or penalty, other charges based on the true origin of the goods.

Exporters must ensure clear documentation of origin and transformation processes.

 

Do I still pay tariffs if I have a US entity?

Yes. Tariffs apply regardless of importer’s identity as tariffs are imposed based on the goods’ origin.

Goods shipped from NZ to a US-based subsidiary are still subject to the same tariffs. 

 

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?

For full details of which tariffs apply to any product/ tariff line, refer to Tariff Finder(external link).

 

How do I identify the correct HS code for my product?

Consult the US Harmonized Tariff Schedule (HTS) database(external link).  

  • The first 6 digits are global; the last 4 are US-specific.
  • Choose the code that best reflects your product’s essential character, material composition, function, and intended use.
  • If multiple codes seem applicable, choose the most specific one. Use the “essential character” test if the product is a composite or set. If still unclear, apply the “last in order” rule as a fallback (here(external link)).

Mis-classification can trigger serious consequences, including: underpayment or overpayment of duties; shipment delays or holds at the border; and penalties or enforcement actions by US Customs and Border Protection (CBP).

CBP may reclassify your goods, apply retroactive duties, and require payment of any shortfall, potentially with interest and penalties (here(external link)).

 

Where can I get help with HS codes?

Use the USITC HTS search tool(external link) or CBP’s CROSS database(external link).

Consult a US customs broker or trade lawyer for complex products.

You can request a binding ruling from CBP(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). 

US Customs and Border Protection’s (US CBP) webpage(external link). 

 

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

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"(external link), where multiple countries are involved in the supply chain of a product which means the country in which the last substantial manufacturing or processing, deemed sufficient to give the commodity its essential character took place.

A product is considered substantially transformed if the processing results in:

  • a new character – its physical or chemical properties have changed.
  • a new use – it serves a different commercial purpose than before.
  • a new name – it is now described differently in trade or customs terms.

Since no US 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 documentation is needed to prove origin?

Maintain detailed records, including: bills of materials, production and processing records, supplier invoices and sourcing documentation, contracts or purchase orders showing where and how goods were made.

A New Zealand Country of Origin Certificate(external link) helps evidence origin but is not binding on CBP.

 

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

On 30 July 2025, President Trump signed Executive Order 14324(external link) suspending duty-free 'de minimis' treatment for all countries from 29 August 2025. This means shipments of low value/de minimis goods from New Zealand, and all other countries, valued under US$800 are no longer eligible to enter the US duty free from that date. See Fact Sheet(external link) here.

Low-Value postal shipments including mail: Duties apply as follows:

Ad Valorem
(% of the value of the goods)		 Tariff reflects the applicable tariff rate for the country of origin
OR  
Specific Duty set fee per postal item (note this will only be available after six months, after which the % tariff will apply in all cases US$80-200 per item depending on the applicable tariff rate for the country of origin.

NB: Each carrier (shipping company or airline) is liable for paying the duties and is required to apply either the ad valorem tariff or the specific duty on a uniform basis, for all shipments.

Exemptions remain in place for gifts valued at less than US$100.

NZ Post has now resumed sending for most businesses. Businesses can now send to the US, with Economy, Economy Tracked, Economy Plus, Courier and Express services in addition to a new sending service(external link) for business customers to the US. Letters sent via economy and letters and documents sent via express are unchanged. Gifts under NZD $150 can be sent via Economy, Courier or Express without being subject to taxes and duties, when using a digital customs form. See more detail in NZ Post’s Press Release(external link). 

More information on the suspension of de minimis and what it means for e-commerce businesses is available on the US Customs and Border Protection website(external link), and further information on the changes for NZ Post users is available in the FAQs section on its website(external link).

 

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 Reports(external link) 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 15% 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.
  • CBP’s detailed guidance is here.

 

Who pays the tariff when exporting to the US?

Tariffs are usually paid by the Importer of Record (IOR) identified according to contract terms, Incoterms, and customs responsibilities.

The IOR can contractually pass tariff costs to another party - often the exporter - via pricing or cost-sharing clauses.

Exporters should review contracts to confirm who bears the tariff burden.

 

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(external link):
    • Processed critical minerals
    • Pharmaceuticals and pharmaceutical ingredients
    • Semiconductors and semiconductor-manufacturing equipment.
    • Trucks 
    • Commercial aircraft, parts and jet engines. 
    • Unmanned aircraft systems, their parts and components.
    • Polysilicon and its derivatives. 
    • Wind turbines, parts and components.
    • Robotics and industrial machinery.
    • Medical Supplies. 

 Are any countries exempt from tariffs?

  • Certain goods from Mexico and Canada are exempt from all tariffs, exempt from all tariffs, if they meet USMCA rules of origin requirements. 
  • 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 for Mexico and an additional 35% for Canada, on top of the US’s standard ‘MFN’ tariff. 
  • Mexican and Canadian products remain subject to sectoral tariffs, including for autos and auto parts, steel and aluminium and their derivatives; and copper and derivatives. 

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. 

Where can I find information about other deals?

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.