NZ Presses US Over Tariffs as Trade Talks Address Dairy and Market Access

Ambassador Greer acknowledged that New Zealand maintains some of the world’s lowest tariffs, applying an average rate of just 0.3 per cent on US goods imports.

Agriculture, Trade and Investment Minister Todd McClay has raised New Zealand’s concerns over escalating US tariffs during meetings in Washington this week with US Trade Representative Jamieson Greer and Secretary of Agriculture Brooke Rollins.

The talks focused on the impact of recent tariff measures on Kiwi exporters, the broader state of the New Zealand–US trade relationship, and joint challenges facing the dairy industry in an increasingly distorted global marketplace.

Tariffs Top the Agenda

Ambassador Greer acknowledged that New Zealand maintains some of the world’s lowest tariffs, applying an average rate of just 0.3 per cent on US goods imports. However, he defended Washington’s decision last month to impose an additional 5 per cent tariff on New Zealand exports, raising the bottom tariff rate to 15 per cent or higher for all countries that sell more to the US than they purchase.

According to the US Trade Representative, the measure is linked to concerns over the balance of trade. For New Zealand exporters, this means greater costs and uncertainty in accessing a market that is otherwise a key destination for agricultural, timber, pharmaceutical, and manufactured goods.

Minister McClay warned that the tariffs leave Kiwi exporters at a competitive disadvantage, particularly compared to producers from heavily subsidised economies.

Ongoing Trade Discussions

The parties agreed that officials from both countries will continue discussions over the coming months to assess the tariffs’ impact on bilateral trade and to explore ways of providing exporters with greater certainty.

Minister McClay emphasised that the trading relationship remains one of mutual benefit, with surpluses shifting between the two partners over time.

“New Zealand’s relationship with the United States is important. Two-way trade is well balanced and complementary. At different times, each side has enjoyed a trade surplus, reflecting the dynamic nature of the relationship,” McClay said.

The Minister and Ambassador Greer agreed to meet again at the ASEAN Trade Ministers’ Meeting in Malaysia in September and at the APEC Leaders’ Summit in Korea in October to review progress and consider further steps.

Addressing Global Dairy Distortions

Alongside tariff issues, McClay, Rollins, and Greer also discussed their shared concerns about global dairy subsidies and the harm caused by trade-distorting practices of some countries.

Both sides acknowledged that dairy farmers are vital to their economies and face mounting pressure from competitors whose governments provide heavy financial support.

The officials agreed to explore joint measures to combat these distortions and ensure fairer conditions for farmers in both countries.

Looking Forward

The meetings underscored the strategic importance of the New Zealand–US trade relationship, which spans not only goods but also investment, services, and agricultural cooperation. With tensions over tariffs now at the forefront, the challenge will be balancing Washington’s protectionist measures with Wellington’s commitment to open, rules-based trade.

The Government has promised to carefully monitor the effects of the new tariff regime and to continue advocating for fair market access for Kiwi exporters, while at the same time partnering with the US to push back against global practices that undermine both countries’ farming communities.