CEOs React as Trump Tariffs Challenge New Zealand Exporters

The recent imposition of a 15% tariff on New Zealand exports by the United States has raised concerns among local business leaders. Since taking office for a second term in January 2023, President Donald Trump has enacted significant changes to U.S. trade policy, which are now impacting New Zealand’s economy. In a survey conducted by the Herald, responses from over 150 CEOs indicated a predominantly negative view of Trump’s performance.

New Zealand exporters are feeling the effects of the tariff, which has added pressure to an industry already grappling with global trade uncertainties. The 2025 CEOs Survey highlighted that only two respondents rated Trump’s actions as “very impressive.” The sentiment among CEOs reflects a broader apprehension about the evolving trade climate under Trump’s administration.

Mixed Reactions from Business Leaders

Despite the challenges, some business leaders express a cautious optimism regarding the U.S. economy. Neil Paviour-Smith, managing director of Forsyth Barr, noted that while Trump has taken full control of U.S. policy, the fundamentals of the U.S. economy remain strong. He stated, “Looking past the noise on the obvious factors that get attention, the U.S. economy is growing and markets are at record levels, suggesting optimism in the outlook.” This perspective indicates a recognition that while the policy landscape may be shifting, the underlying economic conditions are favorable.

The concern among New Zealand CEOs is not limited to tariffs. There is also growing pressure from the U.S. for New Zealand to increase its defense budget. This request reflects the United States’ strategic interests in the Asia-Pacific region and its expectations of allies to contribute more to regional security.

Implications for New Zealand Exporters

The introduction of the tariff is expected to complicate trade relationships between New Zealand and the United States, which is a key market for various exports. Industries such as agriculture and manufacturing, which rely heavily on American consumers, may face increased costs and reduced competitiveness.

In light of these developments, New Zealand’s business leaders are urged to reassess their strategies to navigate the new reality of U.S. trade policy. As the global trade environment evolves, adaptability will be crucial for maintaining market access and sustaining growth.

The overall mood among New Zealand’s business community is one of caution, as they grapple with the implications of Trump’s policies. As the situation unfolds, the focus will remain on how these changes will shape trade dynamics and the broader economic landscape in the coming years.