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Australia escaped the latest increases in global tariffs announced by the United States, but neighboring New Zealand was hit with a 15 percent levy, up from the 10 percent baseline rate that was proposed earlier.

The White House, in a statement on Thursday, put out a list of modified tariff rates for affected countries, just before a pause on the tariffs it had unveiled globally in April was set to expire.

In its statement on Thursday, the White House listed New Zealand under a "reciprocal tariff, adjusted" of 15 percent, from the previous 10 percent baseline rate.

The increased tariffs on New Zealand exports will take effect from Aug 7, placing the country "alongside other key US trading partners including Japan and South Korea", New Zealand's Trade and Investment Minister Todd McClay noted in a statement on Friday.

The US was the second-largest export destination for New Zealand goods in 2024, with a total value of NZ$9 billion ($5.28 billion), according to figures from New Zealand's official data agency.

Major exports

The value of exports to the US nearly doubled over the past decade, driven by purchases of New Zealand meat like beef and sheep, it said, with other major exports including dairy and wine products.

The latest tariff decision "appears to be based on a calculation of trade deficits, with countries running a surplus with the US moved to the higher rate. In New Zealand's case, the surplus is modest, around $500 million, and is not overly significant in the context of the US economy", McClay said.

"I am seeking an urgent call with the US Trade Representative to make New Zealand's position clear: this increase risks harming exporters and consumers of both countries. The US currently faces an average tariff of just 0.8 percent when exporting to New Zealand, far lower than what we face into their market," the minister said.

"Our focus now moves to engaging directly with the US on this current announcement to seek changes to this decision," he said.

"New Zealand has always stood for open, rules-based trade. We will continue to advocate strongly for a resolution that supports our exporters and maintains the strength of our trading relationship with the United States," McClay added in the statement.

Meanwhile, most Australian goods to the US are subject to the baseline 10 percent tariff, according to Australia's Department of Foreign Affairs and Trade.

The Australian government has called for zero US tariffs in line with a free trade agreement between the two countries.

The country avoided a tariff increase that many had feared it would face on Friday, said Ben Udy, lead economist for economic advisory Oxford Economics Australia.

Australian beef producers could stand to gain, with the pillar exports in high demand in recent months due to weather limiting herd numbers in the US, he said.

"With Australian tariffs set to remain at 10 percent, and other exporters of high-quality beef like New Zealand and Japan facing higher tariffs, the industry should remain in high demand in the coming months," Udy said.

"On that basis, Australian businesses can probably afford to leave prices unchanged, forcing US consumers or retailers to bear the brunt of the tariff increase without seeing a decline in demand."