Chile trade diversification amid US tariffs

In late July 2026, Chile’s foreign minister reaffirmed the United States as the country’s primary strategic partner while stressing the continued importance of China for Chile’s copper and lithium exports. The United States responded by imposing a 12.5 % tariff on a broad range of Chilean products, citing forced‑labour concerns. Chile’s government denounced the measure as unjustified, warned of damage to producers and employment, and signaled possible recourse to the World Trade Organization while also urging deeper economic ties with Asian nations.

Two days later, Chilean officials called for stronger multilateral support, urging the preservation of the U.S. free‑trade treaty while expanding partnerships across the European Union, Asia‑Pacific, Brazil and Mexico. The government announced negotiations for new comprehensive economic partnership agreements with the Philippines, Bangladesh, Morocco and India, and a modernization of its existing free‑trade deal with South Korea, aiming to reduce reliance on the U.S. market and boost economic resilience.