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since 2009
Wednesday, October 28, 2026

Business Chile

US$800 Million Hangs Over Chile Tariff

By · October 28, 2026 · 5 min read

CHILE · TRADE

Published Wednesday, 28 October, 5:16 p.m. ET · Source: Chile Undersecretariat for International Economic Relations, US Trade Representative, US Section 301 tariff schedule

Key Facts

  • —Who Chilean Undersecretary for International Economic Relations Paula Estévez met US Trade Representative Jamieson Greer in Washington.
  • —What Chile seeks to expand the list of products exempt from the 12.5% additional US tariff imposed in July 2026.
  • —Where The meeting took place in Washington, DC; the exact venue was not disclosed.
  • —When The Greer meeting occurred on Wednesday, October 28, 2026; a prior meeting with Assistant Secretary Juan Pablo Segura was held Tuesday, October 27, 2026.

Washington Talks

Chilean Undersecretary for International Economic Relations Paula Estévez met US Trade Representative Jamieson Greer in Washington on Wednesday, October 28, 2026, to push for broader tariff exemptions. The meeting followed a Tuesday session with Juan Pablo Segura, the US assistant secretary of state for Western Hemisphere affairs.

Estévez traveled to the United States as part of an official visit organized with the Development Bank of Latin America and the Caribbean (CAF) and the Georgetown Americas Institute. Her agenda also included meetings with US Commerce Department officials on Monday, October 26, 2026.

Cargo ship and fishing boats at the Port of Valparaíso, Chile. Photo: CARLOS TEIXIDOR CADENAS, CC BY-SA 4.0

The talks center on a possible Reciprocal Trade Agreement, known in Chile as an Acuerdo de Comercio Recíproco (ART). Estévez said Chile does not like tariffs and believes more Chilean products should be exempt, adding that Chile is open to a pragmatic solution of mutual benefit.

Tariff Scope

The United States imposed the 12.5% surcharge on Chilean goods in July 2026 under Section 301 of the US Trade Act of 1974. The measure took effect for goods entered from Friday, July 24, 2026, according to one source.

Chilean government figures cited in reporting say products already exempt represent 53.6% of the value of Chile's shipments to the United States. Other reporting describes roughly 40.3% of Chilean shipments as subject to the surcharge, reflecting differing denominators or classifications.

The broader US measure announced on July 23, 2026, covered 60 economies with rates ranging from 10% to 12.5%. Affected countries represented 99% of US imports, according to Chilean media reporting.

Copper, Chile's principal export to the United States, was not included in the new surcharge. Other reported exclusions include certain steel and aluminium articles, civil aircraft and parts, pharmaceutical-use goods, passenger vehicles and light trucks, and certain semiconductor articles.

Products At Issue

Chile is seeking exclusions for salmon and other seafood, fresh and frozen fruit, wine, wood and wood products, and dried fruit and other agricultural products. Avocados were reportedly retained as an exempt product despite a US industry request for their removal.

The existing Chile–US free-trade agreement, signed in 2003 and effective from 2004, remains in force. The proposed ART would function as a complement to that agreement, potentially addressing tariff treatment and non-tariff or regulatory barriers.

Chilean agricultural interests have estimated losses of up to US$800 million from the tariffs, according to an agricultural news report published October 22 and updated October 27, 2026. Affected sectors include seafood, fruit, wine, forestry and other agrifood exporters.

Negotiation History

Bilateral tariff negotiations began in 2025 after tariff announcements by the Trump administration. Chilean reporting says there have been four formal negotiating rounds, with the latest in August 2026 when a US delegation led by Deputy US Trade Representative Jeffrey Goettman visited Chile.

On October 7, 2026, Estévez indicated that Chile was seeking additional exclusions rather than a complete restoration of zero tariffs for all products. She acknowledged that Chile would not obtain a 0% tariff for 100% of its products, saying US commercial policy had changed.

The available reports do not record a public US commitment to expand the exemptions. No detailed statement from Greer, Segura, the White House or the USTR explaining Washington's negotiating position has been made public.

What It Means for US Readers

US importers of Chilean salmon, fresh and frozen fruit, wine, wood products and dried fruit currently face a 12.5% surcharge on many of those goods. Expanded exemptions would lower costs for American buyers and potentially reduce prices for US consumers.

Copper, a critical input for US manufacturing and construction, already enters duty-free under the current exemption. The existing Chile–US free-trade agreement from 2004 continues to govern most bilateral commerce.

What Is Not Known

No agreement has been announced as of October 28, 2026, and no revised US exclusion list has been published or confirmed. The exact scope and legal form of the proposed ART remain unsettled, with Chile's Foreign Ministry legal division still studying the instrument.

The timing of any US proposal is unclear; Chilean reporting says Washington had not yet delivered the expected proposal to improve market access. The exact meeting time, venue, negotiating text, product-by-product requests and US response are not publicly reported.

Coverage figures are inconsistent across sources, with reports citing 53.6% of export value as exempt while others cite approximately 40.3% as affected. The sources do not provide a single harmonized methodology for these calculations.

Frequently Asked Questions

What tariff does the US impose on Chilean goods?

The United States imposed a 12.5% additional tariff on certain Chilean goods in July 2026 under Section 301 of the US Trade Act of 1974. Copper and several other product categories are already exempt from the surcharge.

Which Chilean products could gain new exemptions?

Chile is seeking exemptions for salmon and other seafood, fresh and frozen fruit, wine, wood and wood products, and dried fruit and other agricultural products. Avocados were reportedly retained as exempt despite a US industry request for removal.

Who is negotiating for Chile and the United States?

Chilean Undersecretary for International Economic Relations Paula Estévez is leading the Chilean side and met US Trade Representative Jamieson Greer on October 28, 2026. Deputy US Trade Representative Jeffrey Goettman led the US delegation in the August 2026 round in Chile.

Sources: Chile Undersecretariat for International Economic Relations, US Trade Representative, US Section 301 tariff schedule.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief

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