Source: Radio New Zealand
US Supreme Court has reversed tariffs imposed under the International Emergency Economic Powers Act. 123RF
NZ exporters may be in for a refund of up to $1 billion, following a US Supreme Court decision to reverse President Donald Trump’s Liberation Day tariffs on the basis they were unlawful.
The Supreme Court’s ruling was that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded executive authority and must be reversed. Total refunds were expected to be in the order of between US$166-170b.
The refunds related to IEEPA tariffs paid between April 2025 and February 2026, with US Customs and Border Protection commencing the refund process from 20 April, 2026.
Exports eligible for refunds included agricultural and agri food exports, such as meat, dairy, fruit and wine, as well as manufactured goods, including machinery, medical devices and instruments.
Business consultancy EY New Zealand partner Paul Smith said new modelling indicated New Zealand exporters could collectively be eligible for up to $1b in tariff refunds, although smaller and medium sized (SMEs) exporters may find it more difficult to access the refund pool.
“The opportunity is significant, but while some of New Zealand’s largest exporters are likely to be well placed to claim them directly, EY’s market research suggests a portion of the potential refund pool could be harder for SMEs to recover,” Smith said.
“The refund process has now formally commenced, but it is not automatic.”
He said registered exporters with a US subsidiary acting as the importer may apply directly for refunds, but the situation was not straightforward for exporters who were not the importer of record.
“In practice, this means we do not expect every dollar of the estimated $1 billion to flow back to New Zealand businesses,” Smith said, estimating about 60-70 percent was likely to be recovered.
“Where exporters are not the importer of record, and do not have control or influence over the importer, some refunds may ultimately be retained offshore.”
He said other export-related matters were under review in the US, which posed risks and uncertainty for exporters.
“For exporters, the current New Zealand-United States tariff environment remains complex and uncertain,” Smith said.
“While refunds offer a near term opportunity, businesses should continue to plan on the basis that elevated tariffs, new investigations and ongoing compliance requirements are likely to remain part of the trading landscape.”
Although SMEs may find it difficult to obtain a refund, Smith said they should still make an effort to apply.
“It is clear that the Trump administration is looking to impose new tariffs on most of its trading nations and, unfortunately, New Zealand will get washed up in that,” he said.
“We’ve been advising our clients for a long time that tariffs will remain a permanent feature of the Trump administration and, although refunds are available in relation to IEEPA tariffs, it is likely that tariffs will apply going forward.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand