England were bowled out for 310 by New Zealand after losing the toss in their Group A Champions Trophy match at Cardiff on Tuesday.
Joe Root top-scored with 64, while Jos Buttler was 61 not out.
New Zealand seamers Corey Anderson and Adam Milne took three wickets apiece.
Victory in this fixture would see hosts England into the semi-finals of the 50-over tournament featuring the world's leading eight one-day international teams.
England: Alex Hales Jason Roy Joe Root Eoin Morgan (capt) Ben Stokes Jos Buttler (wkt) Moeen Ali Adil Rashid Liam Plunkett, Mark Wood Jake Ball
New Zealand: Martin Guptill Luke Ronchi (wkt) Kane Williamson (capt) Ross Taylor Neil Broom Jimmy Neesham Corey Anderson Mitchell Santner Adam Milne Tim Southee Trent Boult