Chile faces new 10% tariffs in the U.S. as it pursues trade diplomacy

The U.S. decision to impose a 10% tariff on imports from 97 countries, including Chile, has raised concerns in the Chilean agro-export sector. Although this is not a specific measure against Chile, but a general trade policy, the impact on fruit exports to the North American market could be significant.

Currently, the United States accounts for 16% of the total value of Chilean fruit exports, which is equivalent to approximately 1.2 billion dollars annually. Grapes, citrus fruits and blueberries are the products that would be most affected by the new tariff. The measure is also affecting other Southern Hemisphere competitors, such as Argentina, Peru, and Australia (with 10%), New Zealand (20%), and South Africa (30%), generating an imbalance in the costs of access to the U.S. market among these countries.

Iván Marambio, President of the Board of Directors of Frutas de Chile, said that although the country has a Free Trade Agreement with the United States that established a zero tariff for its exports, there is uncertainty as to how this new policy will be applied within this framework. "A time for diplomacy is now opening up, one in which we hope that the complementary nature of our exports in the supply schedule will be recognized," he said.

The sector is monitoring the situation with caution. "Protectionism in any form is negative. We don't know how consumers will react to higher prices or how other countries will respond. We must really try to avoid an escalation of measures that could lead to new trade barriers," said Marambio.

Regarding the diversification of destinations, the leader said that Chile's policy has historically been to pursue the opening of new markets. "We are a fairly diversified sector, with a balanced presence in Asia, Europe, North America, and Latin America. The visit we are making to India together with an official Chilean delegation is part of this ongoing effort to seek opportunities," he said.

For now, the economic impact of the new tariff is hard to estimate, but a 10% fee on exports to the U.S. could represent an additional burden of more than $100 million for the sector. There is still hope that diplomatic efforts will help preserve the trade conditions established in the bilateral agreement with the U.S. and that it will remain possible for Chilean fruit to continue reaching the North American market unhindered.

For more information:
Iván Marambio
Frutas de Chile
Tel.: +56 9 9991 5564
imarambio@frutasdechile.cl
www.frutasdechile.cl