Martin Guptill and Mark Chapman tore 18 runs off him. Dawson maintained his dignity with a dot ball to finish.
Guptill continued the form he struck with an Eden Park century last week, gathering speed on his way to 62 off 47.
Chapman showed the pedigree which has brought him into the team on the back of Auckland domestic bliss and Hong Kong international experience. The way he found his arc to clear the legside demonstrated the height of professionalism as part of 37 not out off 30 balls.
The pair's 64-run third-wicket partnership off 32 balls – a strike rate of 200 – matched the 78-run off 39-ball pace generated by Colin Munro and Guptill to open up.
Munro set the tone in a display of binary belligerence off the opening overs of David Willey and Curran. The scorebook read 6, 0, 0, 0, 6, 6, 6 as he went on to unleash 57 off 21, including seven sixes. His half-century came in 18 balls.
England hope was justified as they produced the third highest total in eight T20s at Seddon Park.
The visitors batting line-up struck in waves on their way to 194 for seven.
A 93-run third-wicket partnership from 54-balls between Dawid Malan and captain Eoin Morgan negotiated an awkward period at 24 for two in the fourth over.
When Malan exited for 53 off 36 balls, his fourth half-century in five T20 international innings, New Zealand pounced between overs 13-16, shared by de Grandhomme (2), Ish Sodhi and Tim Southee.
England produced a picket fence of 16 singles. That included a gate in the middle with the stumping of Jos Buttler as the Northern Districts' Tim Seifert-Sodhi combination struck.
However, Morgan maintained momentum as part of his second highest T20I score. He finished on 80 not out from 46 balls to earn man-of-the-match.
Spin has succeeded in T20s at Hamilton this season, but Mitchell Santner, Sodhi and Williamson struggled to use that to their advantage against England's juggernaut.
Santner was brought back into the New Zealand side after Ben Wheeler's expensive outing at Eden Park against Australia.
His bandaged right knee had recovered sufficiently to play, but England offered no mercy taking him for 11 from the second over of the game. When the left-arm orthodox spinner returned in the 11th, Morgan continued the assault with 19 runs. Two wides worsened the punishment. He didn't bowl again.
Sodhi offered more control. His first and fourth overs cost three runs apiece and included Buttler's wicket. They bookended concessions of 11 and 14.
Captain Williamson brought himself on in the seventh over - after the powerplay - to take his off breaks away from left-handers Malan and Morgan. They were onto his ruse and picked him off for 16 runs –taking eight runs apiece including two sixes.
Tim Southee was the best of the New Zealand bowlers with a "Richie Benaud special" of two for 22. He found a controlled length by conceding two runs – including a wide – and dismissing Hales with a slower ball in the third over. He also removed Willey to dam England's flow at the death.
"It was bittersweet really," Munro said.
"It's nice to be in the final, but the boys were disappointed not to win.
"England bowled really well in those last couple of overs, they hit their yorkers and we weren't quite able to get on top."
"It doesn't feel like a win," added Morgan.
"We knew 174 was the target to restrict them to at the halfway stage. Once that went, the guys' heads went down, but they finished well. Once the dew kicks in, variations are non-existent until the ball gets older so defending those first six overs was a good test for our guys running into those two [Munro and Guptill] in good form.
"We had absolutely no right to be in the final. We've played terrible so far in the tri-series, apart from today."
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