US hits New Zealand with higher 12.5 percent tariff
The Trump administration is imposing new tariffs ranging from 10 to 12.5 percent on 60 economies, including New Zealand and Australia. The U.S. Trade Representative claims these measures are intended to combat the use of forced labor in global supply chains.
Why it matters
These tariffs represent a significant shift in U.S. trade policy, potentially impacting global trade relations and increasing costs for international exporters.
The US is set to impose new tariffs ranging from 10 to 12.5 percent on 60 economies, including New Zealand, as the Trump administration looks to rebuild its tariff regime.
New Zealand and Australia face a 12.5 percent tariff, while major trading partners including China, the European Union, Japan and South Korea were also targeted.
It comes after the US Supreme Court ruled the administration's previous so-called Liberation Day tariffs were illegal. The new levies replace the temporary Section 122 tariff imposed after that court decision, due to expire on 24 July.
US Trade Representative (USTR) Jamieson Greer claimed the new tariffs were designed to combat imports made with forced labour - a claim previously rejected by New Zealand.
The new tariffs are set to come into effect from just after 4.01pm (New Zealand time) on Friday.
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