The Dairy Companies Association of New Zealand Warns That New US Tariffs Put $1.3 Billion of Dairy Exports at Significant Risk, Citing Disadvantageous Trade Policies.
In a major development for the international dairy community, the Dairy Companies Association of New Zealand (DCANZ) has issued a stern warning about the potential impact of new US tariffs. The association’s executive director, Kimberly Crewther, stated that the trade policies imposed by the Trump administration will put approximately $1.3 billion of New Zealand’s dairy exports to the United States under “huge pressure.” This is a critical piece of data journalism that highlights the fragility of global trade relationships.
The core of the problem lies in the design of the new tariff system, which severely disadvantages New Zealand. The article notes that while some countries, such as Canada, continue to enjoy duty-free access, New Zealand now faces a 15% tariff on top of existing Most Favoured Nation (MFN) tariffs. This complex and unequal application of tariffs gives a significant advantage to competing nations and could disrupt established trade flows.
The impact is particularly severe on New Zealand’s exports of casein and whey products, for which the US is the largest market, accounting for 32% of total exports. The article points out that whey protein concentrate is a key concern, with a new 15% tariff added to the existing tariff. Infant formula exports are also at risk, facing a 32% tariff compared to a 17% tariff imposed on the European Union, a clear example of the unequal trade policy.
While the full economic fallout remains to be seen, the DCANZ is approaching the situation with caution. The article notes that DCANZ executive Kimberly Crewther says it’s a “wait and see game” to determine the final impact, and that the industry will carefully negotiate who absorbs the increased cost. She also highlighted the strong reputation of NZ dairy for its quality, but acknowledged that price is now a major question mark in a newly complex market.
This trade dispute serves as a powerful case study for the entire agribusiness sector. It underscores how political decisions can have an immediate and profound effect on dairy economics and market stability. For producers and analysts worldwide, this is a clear signal that trade policy must be monitored as closely as commodity prices, as it can directly influence the profitability and future of international dairy businesses.
Source: Rural News Group, “Trump’s tariffs put $1.3B NZ exports to US at risk, DCANZ warns”
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