NZ Primary Sector Faces Uncertainty Over US Tariffs

Highlights:

• New Zealand exporters assess impact of the United States' new 10% tariff, set to take effect on April 5.
• US emerged as NZ’s largest red meat export market in 2024, driven by strong beef demand.
• NZ exported over $9 billion worth of goods to the US in 2024, reflecting a 9% annual increase.

Tariffs Create Uncertainty for NZ Exporters

New Zealand’s primary sector is evaluating the potential impact of a new 10% tariff imposed by the United States, which will take effect on April 5. The move has raised concerns among exporters, particularly in industries like red meat and dairy, which rely on US demand.

At the time of writing, New Zealand exported goods worth over $9 billion to the US in 2024, marking a 9% increase from the previous year. Meanwhile, imports from the US reached just over $8 billion, reflecting a 2% annual rise.

Red Meat Industry in Focus

With China’s economic slowdown, the United States became New Zealand’s largest market for red meat exports in 2024, primarily due to strong beef demand. The beef sector is expected to feel the immediate impact of the new tariffs, with exporters closely monitoring potential changes in pricing and consumer demand.

Broader Market Implications

New Zealand exporters are working to understand the full implications of the tariffs. The country’s trade relations with the US have strengthened in recent years, but these new levies could introduce challenges for key industries. Some exporters may look at alternative markets or pricing strategies to mitigate the effects.

As businesses navigate the evolving trade landscape, industry leaders and policymakers will be watching closely to assess how these tariffs impact export revenues and market competitiveness.

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