US hits New Zealand with higher 12.5% tariff

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. When US President Donald Trump’s <a href="https://www.1news.co.nz/2025/04/03/live-updates-liberation-day-trump-to-announce-sweeping-new-tariffs/" target="_blank">“Liberation Day” tariffs were announced in April</a> last year, New Zealand's initial rate was 10%. The new tariffs are set to come into effect from just after 4pm on Friday (NZ time), when the 10% tariffs were set to expire. Prime Minister Christopher Luxon said it was, "extremely disappointing to see new US tariffs on New Zealand and 59 other countries. "The US investigation did not provide meaningful evidence to support claims in relation to forced labour. Tariffs are not the way – they drive up costs and uncertainty for businesses," he said. "That’s why we’re pursuing trade agreements all over the world – to provide our exporters with security and keep growing our economy." In a statement to 1News, Trade Minister Todd McClay said the decision to impose tariffs was "very disappointing but not unexpected", adding also that New Zealand rejected the basis for the move. "The US process was not rigorous. It’s just not credible that imports created with forced labour play any measurable role in New Zealand’s economy." McClay said New Zealand engaged in good faith with US authorities but the investigation "provides a legal pretext for broad tariffs rather than effectively combating forced labour". "These actions create more uncertainty at a time when the world trading system is under real pressure. It is more important than ever that like-minded countries work together to strengthen trade and investment including reducing barriers that make it easier for everybody to trade."