NextFin news, On Wednesday, October 1, 2025, US President Donald Trump continued to announce new tariffs, including a 10% tariff on New Zealand wood products and plans for a 100% tariff on films made outside the United States. These measures are part of a broader tariff regime initiated earlier this year, which imposed a 15% tariff on all New Zealand goods exported to the US, excluding wood products initially.
Trump justified the film tariff by claiming the US movie industry had been "stolen" by other countries, stating on his social media platform Truth Social that it was "just like stealing candy from a baby." The new tariffs were signed into effect at the White House on Tuesday, September 30, 2025.
Economists from New Zealand, including John Ballingall of Sense Partners and Jarrod Kerr of Kiwibank, told Stuff that these tariffs primarily affect US businesses and consumers, as tariffs are taxes on goods entering the US. They emphasized that New Zealand consumers have not experienced direct cost increases due to these tariffs. Kerr noted that the tariffs might even exert deflationary pressure on New Zealand prices, as goods originally destined for the US are redirected to other markets at discounted prices.
Trade Minister Todd McClay acknowledged that tariffs are making it more difficult to do business in the US but highlighted that New Zealand’s premium exports such as meat, dairy, and wine remain competitive despite the 15% tariff. The Meat Industry Association indicated that the full impact of the tariffs on exports would become clearer with September and October trade data.
However, the proposed 100% tariff on foreign films poses a potential risk to New Zealand’s $3 billion film industry, which has grown significantly in recent years. Kerr expressed concern that such a tariff could discourage international productions like "The Lord of the Rings" from filming in New Zealand, though details on how the tariff would be implemented remain unclear.
Meanwhile, the broader economic impact of Trump’s tariffs remains uncertain. Economists warn that ongoing tariff announcements create uncertainty for businesses, potentially delaying investment and hiring decisions. The New Zealand dollar’s depreciation has helped offset some tariff costs by making exports cheaper overseas.
In the US, a recent court ruling found many of Trump’s tariffs illegal due to presidential overreach, with a final decision expected on October 14, 2025. This legal uncertainty adds complexity to the tariffs’ long-term effects, including possible tariff refunds that could influence inflation, taxes, and government budgets.
Overall, while New Zealand consumers have not yet felt significant price increases from Trump’s tariffs as of early October 2025, the evolving trade environment and targeted tariffs on key sectors like film present ongoing challenges and uncertainties for exporters and policymakers.
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