New Zealand Winegrowers Chief Executive Officer Philip Gregan announced today that New Zealand wine exported to the United States of America (USA) will now pay a tariff of 10% (calculated based on the FOB value of the product) in addition to the existing tariff.
This will come into force on Saturday 5 April.
"This 10% addition is the baseline tariff increase for all imports into the USA. This is a significant increase on the current tariffs, which currently range between US 5 and 14 cents per litre, depending on wine and packaging type," says Gregan.
The key points of the new tariffs are as follows:
New Zealand wine being exported to the USA will now pay a tariff of 10% (calculated based on the FOB value of the product) in addition to the existing tariff. This 10% addition is the baseline tariff increase for all imports into the USA. This is a significant increase on the current tariffs, which currently range between US 5 and 14 cents per litre (depending on wine and packaging type).
The tariffs imposed on New Zealand wine are in line with the tariffs imposed on all New Zealand goods exported to the USA.
The increased tariffs on New Zealand wine appear to be the same as those being applied to wines from Australia, Chile, and Argentina but rates are higher for the European Union (20%) and South Africa (30%).
The new tariff regime will come into force on Saturday 5 April (USA time), although there is a goods in transit exemption.
"Over the last 30+ years, our industry has grown exports to more than 100 different countries, with around 90% of our sales now in offshore markets. That export growth has been facilitated by steady improvements in market access conditions, including lower tariffs, achieved over that period," says Gregan."This new tariff regime is a significant change as it is the first time our wines will face higher tariffs going into any market. As the USA is the largest market for New Zealand wine, this undoubtedly will have an impact on our sector."
With New Zealand wine exports to the USA valued at $750 million, the new tariff implies an additional tariff of $75 million at the border. Importer, distributor and retailer margins will then compound that impact. Consumers will end up paying more and that will impact the USA wine market.
Gregan suggests that the higher tariffs, as well as having a chilling impact on the wine market in USA, will likely impact other markets as well.
"If sales fall in the USA, then this will likely increase competition in other markets - simply put, the wine needs to be sold somewhere. We expect increased competition in all markets."
"Individually, wine exporters will need to work out how to manage this additional tariff imposition for their exports to the USA. To help inform business decisions, we will provide regular updates here.
Grape growers will need to talk with the wineries that they supply to about the impact of the tariffs on their exports. Potentially, market uncertainty could create uncertainty about demand for grapes from 2026 and beyond.
"Leading up to this announcement today, we have been talking with the government to ensure that Ministers and officials are aware of the importance of the USA market to the future of our industry. We have a briefing for New Zealand Winegrowers members on Friday 4 April at 3pm (register here) and we will provide further updates as necessary," says Gregan.
"Finally, it is important to note that our success in the USA was led by producing high-quality, distinctive, and sustainable wines with a focus on appealing to consumers. The tariffs in the USA have not changed that, but they are a new hurdle that we will need to manage."
