The US has imposed a new 12.5% tariff on New Zealand, as President Donald Trump looks to get around a Supreme Court decision 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 Trade Minister Todd McClay rebuked last month.
At the time, McClay said it was his view that the tariffs had “nothing to do with forced labour” – claiming the sentiment was shared by other countries, including Australia.
“There isn’t any [forced labour] in New Zealand. We don’t have goods coming into New Zealand that we re-export to the US.
“This is merely trying to find an actual legal base to put that tariff weight back in place.”
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 “Liberation Day” tariffs were announced in April 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.
The morning's headlines in 90 seconds, including Ryan Fox arrives back in NZ, and the political heckle that’s going viral. (Source: 1News)
SHARE ME