It’s a fascinating time for observers of US politics. Yesterday’s mid-term elections delivered a clean sweep to the Democrats in the US Congress, giving them full control of both the House of Representatives and the Senate for the first time since 2023.
New Zealand enjoys good relationships with both sides of Congress, and we look forward to getting to know all the new members on both sides of the aisle. Congress has the power of the purse and can direct where US resources are used both at home and abroad, including on issues of interest to New Zealand.
It is too soon to say what impact the election outcome will have on US policy making once the Democrats take up the reins in the 120th Congress on 3rd January 2027. There is likely to be a strong focus on US domestic policy issues in response to key voter concerns around the cost of living in particular. In the meantime, we don’t expect any major changes to the Administration’s approach to tariffs or other key policies.
Current trade issues notwithstanding, the US remains a critically important partner for New Zealand. The US is a key partner on foreign policy, defence and security and intelligence sharing through the Five Eyes partnership, and the US and remains an indispensable player in the Indo-Pacific region.
The US remains the world’s largest consumer market, accounting for roughly one-third of global consumer spending and around one-quarter of global GDP. Despite the tariff challenges, it is an enormous and highly valuable market which cannot easily be replaced.
In the year to June 2026, New Zealand’s total exports to the USA were worth $19.21 billion, making the USA our top export market for services ($9.23 billion) and third largest export market for goods ($9.98 billion). Our services exports continue to show strong growth including in tourism, whereas the rate of growth in our goods exports has been tempered by the tariffs. The US is also one of our top three sources of foreign investment, and has contributed materially to the growth of the New Zealand space sector and the wider NZ technology sector.
We look forward to working with the new Congress to advance our shared interests.