Why NZ’s VFX & Animation Sector Should Be Watching the U.S. Tariff Moves Closely

While the U.S. has ramped up tariffs on imports from multiple countries, New Zealand has taken a deliberate, non-retaliatory stance—and that could be a strategic win for our screen sector. Furthermore, the tariffs seem to be more about leverage in future trade negotiations, not long-term policy.

Trade Minister Todd McClay confirmed that NZ won’t hit back, citing the risk of inflation and harm to Kiwi consumers. PM Christopher Luxon echoed this, saying “tariffs are not the way to go.” New Zealand's decision not to retaliate could strengthen our position as a trusted, stable ally in future negotiations.

Right now, these tariffs are mostly targeting commodities—steel, aluminium, tech hardware—not services. But it’s unclear if, or when, this could shift to digital exports like VFX, animation, and post-production.

Even if VFX and animation remains untariffed, the indirect impact on production budgets is real. Higher costs for physical goods will strain production pipelines—particularly in the U.S. This could lead to delays or more pressure on vendors to deliver high-quality content for less.

On the bright side: for an industry where 97% of our work is exported, remaining outside the global tariff crossfire should position NZ as a trusted, low-risk partner—exactly what U.S. studios will be looking for as they re-evaluate international production pipelines.

VFXG will continue monitoring the landscape and pushing for policies that keep NZ’s screen sector globally competitive and future-ready.