US trade update – 8 August 2025

Primary Products:

New tariffs announced on New Zealand exports

On 31 July (US time) US President Trump signed Executive Order 14326(external link) which raised the additional tariff on much of New Zealand goods exports to the US from 10% previously, to 15% (in addition to the US's standard MFN tariff). See the Fact Sheet here(external link).
 
The revised tariffs took effect on 7 August, with goods already en route subject to the previous tariff rates, provided they arrive by 4 October (see Sec. 2. Tarff Modifications. (a) of the Executive Order linked above).

Separately, sectoral tariffs continue to apply for some products:

  • 25% for autos and auto parts (NZ$56 million - 1.8% of US goods imports from NZ)
  • 50% for steel and aluminium (NZ$157 million - 0.6% of total US imports from NZ)
  • 50% for copper (NZ$15 million – 0.2% of total US imports from NZ)

There are some exceptions where New Zealand exports just face the MFN tariff. This is primarily for those sectors facing ongoing section 232 investigations.

The sectors that are currently facing the section 232 investigations(external link) are:

  • Timber and Lumber (initiated 10 March)
  •  Pharmaceuticals and pharmaceutical ingredients (initiated 1 April) 
  • Semiconductors and semiconductor-manufacturing equipment (initiated 1 April) 
  • Trucks (initiated 22 April) 
  • Critical minerals (initiated 22 April) 
  • Commercial aircraft, parts and jet engines (initiated 1 May)  
  • Unmanned aircraft systems and parts (initiated 1 July)
  • Polysilicon and its derivatives (initiated 1 July) 

President Trump has recently suggested that the pharmaceutical and semiconductor investigations may conclude soon, with sectoral tariffs to follow.

The details on what tariff a specific product faces are on MFAT’s Tariff Finder(external link)

Why has this happened to New Zealand?

President Trump decided to apply a tariff of 15% or more to all countries with a goods trade surplus with the US, even in cases like New Zealand where the surplus is limited.   

New 50% tariffs on Copper products and derivatives

The US has announced a 50% tariff on imports of copper products and derivatives following a “national security” investigation under section 232 of the Trade Expansion Act 1962. These tariffs will include semi-finished copper products like pipes and copper derivative products like cables and has been effective from August 1

See Proclamation 10962(external link) and Fact Sheet(external link) for further details.

  • Less processed copper is not subject to the tariffs, but other copper products may be added to the tariffs in time through an inclusion process, as is also the case for steel and aluminium products. The specific tariff lines are specified in the Proclamation. 
  • As with the steel and aluminium tariffs the copper tariffs do not stack on top of the reciprocal tariff rate. However, they are in addition to MFN tariff rates.

The details on what tariff a specific product faces are on MFAT’s Tariff Finder(external link)

Suspension of ‘de minimis’ treatment: duties soon apply to low-value shipments

On 30 July 2025, President Trump signed Executive Order 14324(external link) suspending duty-free ‘de minimis’ treatment for all countries from 29 August 2025. This means shipments of low value/de minimis goods from New Zealand, and all other countries, valued under US$800 are no longer eligible to enter the US duty free from that date. See Fact Sheet here(external link).

Low-Value postal shipments including mail: Duties apply from 29 August as follows:

Ad Valorem
(% of the value of the goods)
Tariff reflects the applicable tariff rate for the country of origin
OR
Specific Duty set fee per postal item (note this option will only be available for six months, after which the % tariff will apply in all cases)     US$80-200 per shipment, depending on the applicable tariff rate for the country of origin.

NB: Each carrier (shipping company or airline) is liable for paying the duties and is required to apply either the ad valorem tariff or the specific duty on a uniform basis, for all shipments. 

We expect US Customs and Border Patrol and/or the US Postal Service to provide further guidance on how they will operationalise this change in the coming weeks, and we will update this advice accordingly. 

Exemptions remain in place for gifts valued at less than US$100.

The Tariff Finder(external link) sets out the total tariffs for each US tariff line, including where higher sectoral tariffs apply or where there is an exception.

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