As this year’s NZUS Council Media Fellowship recipient, journalist Madison Malone continues to spotlight leading New Zealand businesses making their mark in the United States.
In a recent episode of Markets with Madison, Malone sits down with ZURU CEO and co-founder Nick Mowbray for a behind-the-scenes look at how the Kiwi-born toy company is navigating the complexities of doing business in the US.
Filmed at ZURU’s Los Angeles office, the episode explores how the company has managed to reduce the tariffs it pays on imports from China to the United States from an estimated US$3 billion to US$300 million annually by applying a “first cost” model. The approach enables ZURU to calculate tariffs based on the production cost of goods, rather than at the retail price.
“It meant we went from a 145% duty rate to under 15%,” said Mowbray.
ZURU, which generates more than half of its global revenue from the US market, was heavily affected when tariffs were introduced under Section 301 of the US Trade Act recently implemented by President Trump. Mowbray explained that the initial tariff hikes nearly drove the company to move manufacturing out of China, but under the adjusted model ZURU found a way to remain competitive while continuing to manufacture at scale within China.
The episode also touches on ZURU’s challenges with intellectual property and trademark infringement which are common issues in the global toy industry, and their commitment to protecting their designs and brand. Mowbray notes that at one point the company was engaged in more than 100 ongoing trademark-related cases.
Malone’s interview with Mowbray forms part of her US reporting series under the NZUS Council Media Fellowship, which aims to promote deeper understanding of the New Zealand/US bilateral relationship through on-the-ground journalism.
Watch the full episode via the NZ Herald: Inside ZURU’s US empire – Markets with Madison
Read more from the NZ Herald’s business feature: Nick Mowbray talks tariffs and toy trademarks – Markets with Madison
About the NZUS Council Media Fellowship
The NZUS Council Media Fellowship supports New Zealand journalists to pursue in-depth reporting on the NZ-US bilateral relationship. Madison Malone is the 2025 recipient, producing a series of business-focused stories from the United States for NZME’s Markets with Madison.