The New Zealand government stated that the products that would be positively impacted by the tariff removal were almost one-fourth of what New Zealand exported to the US, valued at around NZ$2.21 billion.
New Zealand welcomed the United States‘ (US) decision to remove tariffs on a variety of New Zealand agricultural exports, including beef, offal, and kiwi fruit, while also desiring that the US will remove all remaining tariffs imposed on New Zealand goods.
This move came after US President Donald Trump‘s announcement on Friday that the government would roll back tariffs on more than 200 food products. This includes a wide range of food products such as coffee, beef, bananas, and orange juice. It was a response after Americans were getting increasingly worried about the high cost of groceries.
The new exemptions will take effect retroactively from Thursday. It was a sharp shift in policy for the Trump administration. Trump, who has previously maintained that sweeping import duties he imposed did not cause inflation.
He said to reporters that in some cases, tariffs “in some cases” might increase prices. But he stood by his claim that the US faces less inflation overall.
In the recent elections held in places such as Virginia, New Jersey, and New York City, Democrats achieved victories. It was because the growing impact of affordability and rising food prices were still on voters’ minds.
Trump, when speaking with journalists aboard Air Force One, announced that he plans to pay $2,000 to lower- and middle-income Americans. They will be funded using the income the US gets from tariffs sometime in the coming years. He described tariffs as the government issuing such dividends while reducing national debt.
In other developments related to trade, the Trump administration stated that it is in the preliminary agreement stage on Thursday. Once they are finalised, they will remove tariffs on certain food and other imports from countries such as Argentina, Ecuador, Guatemala, and El Salvador. US officials are aiming to finalize more deals by the end of the year.
The US has a latest list of exempted products. These are more than 200 commonly bought items by Americans, many of which have seen double-digit annual price increases. These include everything from oranges, acai berries, and paprika to cocoa, specific chemicals used in food production, fertilizers, and even communion wafers.
Many of these items have seen their prices increase by 10% or more over the past year, as reported by the Consumer Price Index.
For example, the price of ground beef as of September was 13% higher, and the price of steaks increased by 17% compared to 2024. It was the largest price increase streak seen in over three years.
Such an increase in prices of items is similar to the period when the US experienced the peak inflation during Democratic President Joe Biden‘s administration. Despite the US being a major beef producer, the persistent shortage of cattle in recent years has been a key factor behind the price increase. Other items, such as banana prices, increased by around 7% and the prices of tomatoes increased by 1%.
The White House, in a statement accompanying the order, stated that this move helped them make significant progress to get more reciprocal trade terms with US partners.
The order stated that Trump’s decision was to exempt certain food items from tariffs, as they are not produced in the United States, and that nine framework deals, two final agreements on reciprocal trade, and two investment deals were concluded.
The New Zealand government stated that the products that would be positively impacted by the tariff removal were almost one-fourth of what New Zealand exported to the US, valued at around NZ$2.21 billion.
New Zealand’s Trade Minister, Todd McClay, stated that this move was a positive development, noting that it would be welcomed by New Zealand exporters who have struggled for months with uncertainty and higher costs.
He argued for removing additional tariffs, stating that trade between New Zealand and the United States is already balanced and that more positive steps like these will support exporters even more.
