New Zealand has cautiously welcomed the United States' decision to remove additional reciprocal tariffs on several agricultural products, including kiwi fruit. The announcement followed President Donald Trump's move to lift tariffs applied to more than 200 food items amid concerns about rising U.S. grocery prices.
According to the New Zealand government, the affected products account for about 25 per cent of New Zealand's exports to the U.S. and are valued at roughly NZ$2.21 billion, equal to about US$1.25 billion annually. Trade and Agriculture Minister Todd McClay said, "The U.S. remains an important trade partner for New Zealand and the decision to lift these tariffs is a step in the right direction and will be welcomed by exporters who have faced months of uncertainty and higher costs."
The reciprocal tariffs were first introduced in April at 10 per cent and increased to 15 per cent in August, based on New Zealand running what the U.S. described as a modest trade surplus. The tariff reduction covers kiwi fruit, miscellaneous fresh fruit, berries, and avocados. The government estimates a saving of about NZ$330 million, equal to roughly US$187 million, in additional tariff duty from returning to pre-April market access conditions.
McClay noted that the rollback remains incomplete. "However, this is only a partial rollback. Tariffs remain in place on other important New Zealand products, and the broader reciprocal tariff framework continues to create cost and uncertainty for our exporters." He added that New Zealand views its trading relationship with the U.S. as balanced, pointing out that U.S. goods entering New Zealand face an average tariff of about 0.3 per cent with limited restrictions.
He said he has discussed the issue repeatedly with U.S. Trade Representative Jamieson Greer and will continue to argue for full removal of the remaining reciprocal tariffs. The minister also said that the U.S. decision increases certainty for exporters ahead of upcoming seasons, although further adjustments are needed to stabilise long-term trading conditions.
Kiwi fruit is among the products now entering the U.S. without the additional duty, and the government views improved access as important for horticultural exporters. McClay said New Zealand will continue to seek the removal of the remaining tariffs to reduce cost pressures and restore predictability to trade with the United States.
Source 1: Reuters
Source 2: Inside Government
