FAQs

US Tariffs

 

What was announced on 2 April?

On April 2 (US time) US President Trump signed an Executive Order(external link) on reciprocal tariffs that means that New Zealand goods exports to the US will be subject to an additional 10% tariff over current tariff rates  (refer to www.tariff-finder.govt.nz(external link)) from 5 April.
 
There are currently some exceptions to this:

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 earlier tariffs on steel and aluminium and their derivatives?

No, products covered by earlier US tariff increases, such as steel products(external link) and their derivatives (linked here(external link)) and aluminium products(external link) and their derivatives (linked here(external link)) are exempt from the additional 10% tariff because they already face a 25% tariff.

Are the 10% tariffs additional to the earlier tariffs on automobiles and key parts?

No, products covered by earlier US tariff increases, such as automobiles and key automobile parts(external link) are exempt from the additional 10% tariff because they are already facing a 25% tariff.

 

Do any of the US announcements affect exports of services?

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 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).

 

Where does the US publish all these documents?

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

More detailed information is 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: How the US determines country of origin for duty assessment - myNZTE(external link)

 

What changes have the US made to de minimis?

There have been no changes to shipments of low value/de minimis goods from New Zealand. 

However, the US has issued a range of Executive Orders over the past two weeks relating to low value / de minimis shipments of Chinese goods: starting on 2 April(external link), with revisions on 8 April(external link), and further revisions on 9 April(external link). These imposed escalating increases in ad valorem / specific duties for such shipments, as set out in the table below. 

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: 

  • duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C)(external link) shall no longer be available for products of the PRC (which include products of Hong Kong) described in section 2(a) of Executive Order 14195(external link), as amended by Executive Order 14228(external link), including international postal packages sent to the United States through the international postal network from the PRC or Hong Kong, that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on May 2, 2025.

We would suggest closely monitoring the situation from 2 May, including any announcements or FAQs by US Customs and Border Protection(external link), and/or potentially seeking further clarifications from shipping companies as to how such shipments have been treated by US. 

Low-Value Postal Shipments of Chinese goods (including Hong Kong): Duties Apply As Follows:

   Arriving in the US 
until 1 May US time 
(until 11:59pm EST)		 Arriving in the US 
Between 2-31 May US time (until 11:59pm EDT)		 Arriving in the US 
From 1 June US time 
(from 12:01am EDT)
Ad Valorem
(% of the value of the goods)		 Exempt from customs duties 120% 120%
OR      
Specific Duty 
(set fee per postal shipment)		 Exempt from customs duties US$100 per postal shipment US$200 per postal shipment

 

My product will have 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.

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.