New US Tariffs: What they mean for Kiwi small businesses
If you’ve been following the headlines, you’ll know the US has just increased tariffs on New Zealand exports from 10% to 15% — a surprise change that puts us at a disadvantage compared to countries like Australia, the UK, Argentina, and Uruguay, who still sit at 10%.
While tariffs might feel like a “big business” problem, they can ripple through the entire economy and that includes small businesses here in New Zealand.
Why This Matters
When our exporters face higher tariffs, the cost of selling products into the US goes up. In competitive markets like beef, wine, and manufactured goods, a 5% price gap can be the difference between winning and losing a contract. For small businesses that supply, service, or partner with these exporters, reduced sales overseas can flow back into reduced orders here at home.
Economists say the direct impact won’t be as catastrophic as first feared, but it still creates a competitive wedge between NZ and key trading partners. For industries where margins are already tight, this is a big deal.
Who’s Likely to Feel It Most
Exporters of goods directly to the US – particularly beef and wine producers, who now face stronger price competition from countries with lower tariffs.
Suppliers to exporters – from packaging companies to transport operators, if your clients export heavily to the US, their reduced volumes or tighter budgets may affect you.
Niche product makers – those selling premium NZ-made goods may have to work harder to justify higher prices in the US market.
Why Small Businesses Should Pay Attention
Even if you don’t sell directly to the US, tariffs can indirectly affect you through:
Supply chain pressures – slower export demand can lead to production cuts, impacting upstream suppliers.
Currency shifts – tariffs can influence the NZD/AUD exchange rate, which affects import costs.
Consumer spending – if exporters face lower profits, local spending in their communities can slow.
Possible Responses for Small Businesses
Diversify your market exposure – If you have customers tied to US exports, consider broadening your client base into sectors or regions less affected by tariffs.
Review contracts and pricing – Where possible, build in flexibility to adjust for sudden cost changes.
Keep an eye on the dollar – Currency movements may create opportunities (or risks) for buying overseas goods.
Strengthen local networks – Lean into domestic markets and partnerships to reduce reliance on global volatility.
The Outlook
The Prime Minister has described the decision as “blunt and late,” but maintains exporters are “nimble and agile.” Trade officials are heading to Washington to press New Zealand’s case, but for now, the 15% rate stands.
For small businesses, the key is awareness and adaptability. Changes like this are a reminder to keep your business plans flexible and to stay informed about global developments — because even if you’re not sending goods overseas, the effects can still land on your doorstep.
Need help figuring out what this could mean for your business? Our team of accountants in Wellington can help you understand the impact on your cash flow, pricing, and future plans. We’ll work with you to keep your business steady, even when global changes throw a curveball.
Get in touch with us today and let’s talk through your options.
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