What changed
2026-08-28 18:50 UTC → 2026-09-04 04:22 UTC ·
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In late July 2026, Chile’s foreign minister reiterated the United States as its chief strategic partner while warning that China remained vital for copper and lithium exports. The United States responded with a 12.5% tariff on a broad range of Following high-level meetings in Santiago between Chilean products, citing forced-labour concerns. Chile denounced the measure, warned of damage to producers and employment, Undersecretary Paula Estévez and signalled possible recourse to the World Trade Organization while urging deeper economic ties with Asian nations. Two days later, officials called for stronger multilateral support, urging preservation of the U.S. free-trade treaty and expanding partnerships across the European Union, Asia-Pacific, Brazil, and Mexico. Negotiations were launched for comprehensive economic partnership agreements with the Philippines, Bangladesh, Morocco, and India, alongside a modernisation of the free-trade deal with South Korea. On 29 July, Deputy Assistant Trade Representative Jeffrey Goettman, bilateral negotiations regarding the United States announced an additional 12.5% tariff covering roughly 40% of Chile’s export basket, surcharge have continued without immediate relief. The recent in-person discussions concluded without granting new exemptions for critical sectors, including agricultural goods, salmon, fruits, poultry, fruit, wine, dairy, and timber. By mid-August, political fallout intensified. Former Foreign Minister Mariano Fernández criticized the Trump administration, describing the U.S. as an ‘increasingly unreliable partner’ and arguing that Chile must maintain sovereignty amidst the ‘silent trade war’ between the U.S. and China. He specifically challenged the tariffs, noting they contradict existing Free Trade Agreements. On 24 August, high-level negotiations commenced in Santiago as a delegation from the Office of the United States Trade Representative (USTR), led by Deputy Representative Jeffrey Goettman, arrived to discuss the impact of the tariffs. forestry products. While approximately 53.6% of Chilean exports to the U.S. remain duty-free, the tariffs impact roughly affect approximately 40.3% of the export basket. As A new round of 27 August, in-person meetings between virtual discussions is expected within two weeks, during which the United States is anticipated to present a proposal regarding potential product exemptions. The economic impact of the tariffs is becoming evident in specific sectors. In July 2026, Chilean Undersecretary Paula Estévez bottled wine exports saw a significant downturn, with total volume falling by 7.2% and U.S. officials concluded without new exemptions for sectors value by 10.9% compared to the previous year. The decline was most acute in the United States, where wine shipment volumes plummeted by 36% and values dropped by 47%. While growth was noted in markets such as salmon, fruit, wine, China, the United Kingdom, and forestry. Mexico, the U.S. market remains heavily impacted by the trade measures.