US tariff hike on New Zealand wine pressures Loveblock Wine

The United States has imposed a new 12.5% tariff on most goods from New Zealand, including wine, replacing a temporary 10% rate under the Section 122 regime. Erica Crawford, co‑founder of Loveblock Wine, said the increase was expected but adds to several years of rising freight, glass, fuel and production costs that have already squeezed margins.

Crawford explained that wine is a discretionary purchase, so even a modest price rise at the winery level can translate into an extra two to three US dollars on the shelf. In a highly competitive market, the company must balance protecting margins with maintaining shelf space against larger producers and U.S. brands that do not face the tariff. The United States remains New Zealand’s largest wine export market, accounting for about one‑third of the country’s wine export earnings, valued at roughly NZ$762 million in the year to June 2025. Crawford noted the need to diversify into growth markets such as Korea and India to reduce reliance on a single market.