The latest Market Intelligence Report from the Ministry of Foreign Affairs and Trade (MFAT) provides an update on US tariffs following the recent ruling by the US Supreme Court that “reciprocal tariffs” imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional. Thus the additional 15% tariff on most NZ goods exports to the US was revoked.
Instead, the US Administration has introduced a temporary global tariff of 10 percent on goods imports, including from New Zealand, under Section 122 of the Trade Act of 1974. This entered into force overnight (24th February US time). President Trump has indicated that rate may rise to 15 percent, although this has not yet been officially confirmed.
The MFAT report notes the Section 122 tariffs will not stack on top of existing Section 232 tariffs, such as those applying to steel and aluminium, and certain product-specific exceptions may apply. The measures are temporary in nature under US law, lasting up to 150 days unless extended or replaced by further action. The Administration is also considering other trade policy measures including launching Section 301 investigations into unfair trade practices of some major trading partners.
The NZUS Council encourages exporters to review the full MFAT report for detailed guidance and to monitor developments closely as further announcements are made. We recommend business follow their Tariff Finder tool and reach out to MFAT directly with any specific questions on the changing tariffs. Exporters should also stay in close touch with their customs brokers.
Read the full report on the MFAT website.