Chile Ruled Out Zero Tariffs on US Exports
Chilean negotiators confirmed that achieving zero tariffs on all exports to the United States is currently unattainable.
Updated on Oct. 8, 2026 in International Trade
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Chilean trade negotiator Paula Estévez announced that securing zero tariffs for all exports to the United States is not a goal of current trade talks. This follows the U.S. government decision to implement a 12.5% surcharge on several key Chilean goods.
Why it matters
The shift in trade objectives comes as the U.S. continues to enforce a 12.5% surcharge on specific imports following a Section 301 investigation into forced labor. This policy has forced a reevaluation of trade terms for critical Chilean sectors including timber, wine, fruit, and salmon.
Approximately 53% of Chilean export value currently enters the U.S. at zero tariff. This stands against the 12.5% surcharge imposed by the U.S. on products like salmon, timber, wine, and fruit.
The players
Paula Estévez
She serves as the primary trade negotiator representing Chile in discussions with the United States.
The details
Negotiators are currently working through the terms of an Agreement on Reciprocal Trade between the two nations. The ongoing trade friction stems from a Section 301 investigation into forced labor that led to the U.S. surcharge on July 23, 2026, which significantly impacts industries such as salmon, where half of total production is exported to the U.S.
Timeline
July 23, 2026: The United States imposed a 12.5% surcharge on various Chilean goods.
August 26, 2026: Paula Estévez stated that Washington would provide a new exemption list.
October 7, 2026: Estévez confirmed that full zero tariffs are not currently achievable.
Market Dynamics
These negotiations follow the precedents established by the U.S. Section 301 trade investigation into forced labor. The current trade posture marks a departure from previous expectations of expanding tariff-free access.
The persistent 12.5% surcharge directly impacts the margins for businesses exporting timber, fruit, wine, and salmon. Investors should monitor how the upcoming U.S. exemption list shifts cost structures for these key sectors.
The takeaway
While full tariff-free access remains off the table, the upcoming exemption list may provide relief for specific sectors. Diversification remains key for Chilean exporters as they navigate the ongoing impact of Section 301 enforcement.
What happens next
The United States is expected to release a new list of trade exemptions for Chilean goods in the coming weeks.
Further reading
For broader context on current global negotiations, visit the International Trade section.
Source note: This article includes information reported by The Rio Times.
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