Kiwi wine growers nervous about 'hypothetical' Trump tariffs

Kiwi winemakers are anxiously waiting to see if and when they'll be hit by high tariffs exporting into the US, following the election of Donald Trump.

President-elect Trump campaigned on introducing tariffs of up to 20 percent on imported goods as part of his 'America First' economic policy.

If he goes through with that promise, it could hit our exporters hard - and with the US market accounting for some 40 percent of New Zealand's wine exports, it could be devastating for the $800 million industry here.

New Zealand Winegrowers chief executive officer Philip Gregan told Checkpoint on Friday there was "a little bit of nervousness" about the "hypothetical" hit to business.

"But you know, there's two months to go before the new administration is sworn in. Nobody knows if tariffs will be applied; if they are, how much [or] when - so there's very little that anybody can do at the moment other than watch and wait to see what happens."

Tariffs are typically paid by importers, and the cost passed onto the consumer - hiking prices for imports versus locally produced goods.

The US was an important market for Kiwi wines, Gregan said - one that had taken a long time to develop.

He said exporters he had spoken to so far had not had time to even think about it.

"It will be a decision ultimately for every individual wine business and for their distribution partners into the US as to how they will manage any tariffs if they are imposed. And that could be months away if it ever happens."

He feared a trade war might happen, with other countries also putting up barriers to trade in response.

Medium- to long-term Gregan said there were other potential markets New Zealand growers could look to, but it would take time.

"It takes a huge amount of investment and a huge amount of effort.

"And from a New Zealand wine perspective, we've developed the US market over the past 20 years. We've been very successful in that market and it's something that the industry is very determined to continue to grow in the years ahead."

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