The United States has officially imposed a new round of tariffs on imports—and New Zealand is on the list. While the rate of 10% may not seem extreme at first glance, this move by President Trump is raising eyebrows across trade, export, and hospitality industries here in Aotearoa.
So, what does this mean if you run a hotel, lodge, or B&B in New Zealand? Let’s break it down.
What’s Happened?
President Donald Trump has launched a global tariff campaign, applying “reciprocal tariffs” on goods imported from countries that he says impose duties on US products. According to the announcement, the US claims New Zealand levies a 20% tariff on American goods—though economists here have questioned how that number was calculated.
Nonetheless, New Zealand now faces a 10% US tariff—the minimum rate under the new scheme. That’s still significantly lower than other countries like China (34%), the European Union (20%), or Malaysia (49%), but it’s a surprising development for a country that has traditionally maintained strong trade ties with the US.
How Will This Affect New Zealand’s Hotel Industry?
While this is primarily a trade policy move, tariffs can have knock-on effects that impact a variety of industries—including tourism and hospitality.
1. Imported Goods Could Become More Expensive
If your hotel sources US-made products—like guest amenities, electronics, or certain food and beverage items—you may see your costs rise. Even if you don’t import directly, your local suppliers might, and those costs could be passed on to you.
2. Currency Fluctuations Could Influence Pricing
According to Westpac’s chief economist, Kelly Eckhold, the NZD could depreciate in response to this news. That could make imported products more expensive overall, and potentially push up general operational costs for your property.
3. Flow-On Effects from Other Trade Disruptions
Economist Shamubeel Eaqub has noted that New Zealand could feel the secondary effects of tariffs placed on countries we rely on for export growth—such as China and Vietnam. If demand in those markets slows, it could affect local suppliers and ripple into various sectors of the economy.
4. Guest Spending May Be Affected
Any impact on global markets—including KiwiSaver values and stock performance—may influence how freely both locals and international guests spend money when travelling. This could affect bookings, on-site spending, or average length of stay.
Why It’s Not All Doom and Gloom
While the news isn’t ideal, there are some mitigating factors that may soften the blow:
- The 10% rate is lower than expected, offering some relief for exporters and business owners
- New Zealand’s floating exchange rate acts as a natural buffer to global shocks
- Many experts believe it could take 6 to 18 months for the full impacts to be felt—giving hoteliers time to prepare
And as Kernel Wealth founder Dean Anderson noted, “The challenge has been uncertainty. Now we at least have a baseline. We know what we’re playing with.”
How Kiwi Hoteliers Can Stay Ahead
In unpredictable times, having clear oversight of your business operations is essential. With Preno’s all-in-one hotel management software, New Zealand hoteliers can:
- Track performance metrics in real time
- Optimise pricing and room availability
- Reduce time spent on admin
- Stay flexible and responsive to changes
Whether you’re running a boutique lodge in Queenstown or a city hotel in Wellington, Preno helps you stay focused on delivering top-tier guest experiences—even when the global picture gets murky.
Stay informed. Stay adaptable. And know that whatever global events come your way, Preno’s got your back.
