Due to high tariffs compressing profits, a major apple grower in New Zealand will suspend shipments to the United States. In April of this year, the United States imposed a 10% tariff on a series of New Zealand exports, including apples, and increased it to 15% in August. Although tariffs on some products, including beef and kiwifruit, were lifted last month, the tariff on apples remains. Hawke's Bay is New Zealand's largest apple-producing region, accounting for 64% of the country's total production. Paul Paynter, the head of a local grower under the name Yummy Fruit, said that the 15% tariff basically wiped out all his profits from exports to the United States. Moreover, the U.S. market is currently oversupplied, and prices are not ideal. He is now focusing on other markets, although they also face challenges. Jonathan Brookes, a horticulture consultant for the local agricultural consulting firm AgFirst, said that most growers are currently busy with fruit thinning. The U.S. market tends to be somewhat saturated due to domestic supply, although some key buyers perform well, they are very picky. Many markets in Asia and surrounding regions are actually performing quite well. Despite the export challenges, Paynter remains optimistic about the upcoming harvest season because the growing conditions have been nearly perfect, and the fruit quality looks good. The harvest is expected to start on time early next year, and Hawke's Bay is expected to have a bumper crop. Image source: istock2025 International Fruit and Vegetable Report. All rights reserved. For reprint permission, contact the International Fruit and Vegetable Report and credit the source as the International Fruit and Vegetable Report.