14 April 2025
Southland exporters looking for opportunities in new US tariffs
Many Southland exporters are taking a “wait and see” approach to the United States’ new tariff regime, but believe the region won’t be as heavily impacted as others.
US President Donald Trump has introduced a 10% tariff on top of existing tariffs to swathes of industries, but confusion reigns as exporters around the world try to establish how they will be imposed and keep up with which rules the president has backtracked on.
Southland was often considered a significant exporter — of food, especially — but Export Southland chairman Jamie May said only a small amount of container trade from the region was destined for the US.
Southland’s biggest exports to the country were dairy products, meat, pebbles, pet food, processed forestry products and aluminium, he said.
But the New Zealand Aluminium Smelter, for example, recently reported only 2% of the aluminium it produced in Southland was going to the United States.
May said local exporters were taking a “wait and see” approach to the new tariff regime while for others, it was business as usual.
They would be waiting to see if the hikes caused inflationary pressures which could result in economic slowdowns, leading to recession across other countries New Zealand traded with, May said.
The tariffs could also disrupt trade lanes, affecting shipping, he said.
“Some sea freight exporters were cautious about having product on the water, destined for the US, which may be subject to an overnight change or decision.”
The economic shake up could present opportunities for Southland exporters because of tariffs imposed on other countries, May said, “It’s a case of identifying these.”
A significant portion of timber company Niagara’s product was sent to the US but sales and marketing manager Jamie Barton said it had been business as usual for the manufacturer.
The timber industry had been exempt from tariffs, he said, presumably because America didn’t have its own timber manufacturing capabilities.
Nationally, New Zealand’s timber exports have grown by 30% since 2020, the Wood Processors and Manufacturers’ Association reported.
“Like everyone, we’re just keeping an eye on it,” Barton said, pointing out that Niagara would be waiting to see the impact on its customers in South East Asia.
Alliance Group global sales director James McWilliam said it was too early to say what impact the tariffs would have on pricing and demand.
“While we have product already en route to our key markets, and buyer enquiries are holding steady compared to last month, there is still a degree of uncertainty as the situation unfolds,” he said.
The business was working with customers and monitoring developments to understand how market dynamics might shift, he said.
But for now, demand in the US was strong, McWilliam said, with New Zealand responding to a shortage of domestic US beef and constrained supply globally.
Meat Industry Association chief executive Sirma Karapeeva echoed McWilliam’s sentiments.
“The strength of the relationships that New Zealand exporters have built over time puts them in a good position to navigate this uncertainty,” she said.
“Companies are also monitoring the global beef market, which is interconnected. Exporting countries may redirect their products to markets where New Zealand also operates, however our exporters are experienced in managing global volatility.”
Fonterra general manager of trade and strategy Justine Arrol said the business mainly exported specialist dairy protein ingredients to the US.
These included caseins, milk protein concentrates and whey protein concentrates; used by US companies manufacturing nutritional products for both the US and global markets.
“At a time of rising protectionism and geopolitical uncertainty, the international rules-based trading system, remains critically important to providing certainty and stability for New Zealand exporters,” Arrol said.
Southland boat manufacturer Stabicraft had recently closed its manufacturing plants in the US due to “a decline in demand” but marketing general manager Daniel Upperton said the country remained a significant export market.
Stabicraft chief executive Aaron Greene was currently in the Unites States where he would be discussing the tariff changes with dealers.
Source: thepress.co.nz 14 April 2025