New Zealand wine producer Invivo is working to shield consumers from the effects of a newly imposed 10 percent tariff on its exports to the United States.
U.S. President Donald Trump announced on Thursday that New Zealand exports would be subject to the tariff, impacting one of Invivo’s key markets.
Invivo co-founder Rob Cameron acknowledged widespread speculation about potential tariffs before the announcement.
“It’s not ideal—we would have hoped there wouldn’t be any tariff at all—but in the scheme of things, this is probably the best outcome we could have hoped for,” Cameron said. “We haven’t yet spoken to our partners in the U.S., but initially, we believe this increase can be managed throughout the value chain, with all parties absorbing a share to prevent a significant rise in retail prices.”
Cameron emphasized the company’s commitment to minimizing the impact on consumers.
“What many people don’t realize is that a percentage increase at the border can result in a substantial rise in retail prices due to layers of distribution. Our strategy is to distribute the 10 percent tariff impact across the value chain as evenly as possible.”
The prolonged uncertainty surrounding potential tariffs had made planning difficult, but Cameron said that having a definitive policy now allows the company to move forward.
“While this is not ideal, we can manage it and continue to grow our business,” he said.
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