US Tariffs Impact Global Trade: A Blow to Fonterra and American Consumers

President Donald Trump has introduced new tariffs in an effort to reshape global trade relations, announcing a 34% tax on imports from China and a 20% tariff on the European Union. Additionally, imports from New Zealand and Australia will face a 10% tariff. Simon Tucker, the co-op’s group director of global external affairs, states that the effects of these tariffs are still being assessed, but it is clear they will pose challenges for companies like Fonterra.

Fonterra, a major supplier to the US beverage market, including the top brand Premier Protein, anticipates that these tariffs will increase costs throughout the supply chain. As Tucker explains, "Obviously, we always want to avoid any increases in tariffs or other trade barriers across all the markets we operate in. Tariffs and other trade barriers create additional costs across the supply chain, which are ultimately borne by local consumers.”

While Fonterra has experience in navigating protected trade environments, the new tariffs underscore the ongoing challenges faced by companies reliant on international trade.