US hits New Zealand with higher 12.5% tariff
The U.S. has imposed a 12.5% tariff on New Zealand and 59 other nations, citing inadequate enforcement of forced labor laws. New Zealand officials have criticized the move, arguing that the tariffs lack evidence and will negatively impact trade and economic security.
Why it matters
This trade action creates significant economic friction between the U.S. and its international partners, challenging existing trade agreements.
The US has imposed a new 12.5% tariff on New Zealand, as President Donald Trump looks to get around <a href="https://www.1news.co.nz/2026/02/21/nz-warns-of-considerable-uncertainty-after-us-tariff-ruling/">a Supreme Court decision</a> that struck down his earlier "Liberation Day" tariffs. New Zealand joins 59 other economies, including the UK and Australia, in facing tariffs ranging from 10% to 12.5%. US trade representative Jamieson Greer said the new tariffs were designed to combat goods produced with forced labour – a claim that <a href="n-trumps-proposed-125-forced-labour-tariff/">Trade Minister Todd McClay rebuked last month</a>. Under the new regime, countries assessed as having laws in place to combat forced labour, but not enforcing them effectively, face a 10% tariff – a group that includes the UK, Canada and Mexico. Countries without such laws on the books, including New Zealand, Australia, China, Japan, India and dozens of others, face the higher 12.5% rate.
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