Chile Admits Not All Goods Regain Zero US Tariff
Trade: Chile
Key Facts
—Who. Paula Estévez, head of Subrei, Chile’s undersecretariat for international economic relations, and Brandon Judd, the US ambassador to Chile.
—What. Estévez said Chile will not get zero tariffs on all of its exports in the talks with Washington. Judd told Chileans to stay optimistic.
—Numbers. A 12.5% US surcharge applies to Chilean goods today. About 53% of the value of Chile’s exports to the US already enters at zero tariff.
—Exposed. Salmon, timber, wine and fruit, according to Estévez. According to her, about half of Chile’s salmon exports go to the US.
—When. Wednesday 7 October 2026, at the Global Trade Day event organised by shipping group CSAV in Chile.
—Status. Talks on a Reciprocal Trade Agreement continue. None of the reports we reviewed gives a deadline.
—As of. 8 October 2026, 00:30 GMT.
Chile’s top trade negotiator said on Wednesday 7 October 2026 that the country will not win zero US tariffs on all of its exports. At the same event, the US ambassador asked Chileans to stay optimistic about the talks. For American importers of Chilean salmon, fruit and wine, the message is that some of the 12.5% surcharge may stay.
What We Know
Paula Estévez spoke at the Global Trade Day, organised by shipping group CSAV, according to BioBioChile and La Tercera. She said that Chile will not reach zero tariffs and that this is not the goal of the negotiation.
She explained that not every product will enter duty free again because US trade policy has changed, according to BioBioChile. Chile is negotiating an Agreement on Reciprocal Trade, which she described as a deal between equals.
About 53% of the value of Chilean exports to the US already enters at zero tariff, she said. The talks aim to raise that share and to bring in other strategic products.
Ambassador Brandon Judd said Estévez had been very optimistic and should be. He added that, when everything is said and done, he believes the talks will end very well for Chile, but he could not give details.
Where the 12.5% Surcharge Comes From
The US announced the 12.5% surcharge on 23 July 2026 after a trade investigation (Section 301) into forced labour, according to Subrei and BioBioChile. It targets countries that lack a ban on imports made with forced labour, and it does not accuse Chilean products of being made that way.
Estévez named salmon, timber, wine and fruit among the products hit, and said about half of salmon exports go to the US. We have explained the surcharge and how it compares with rivals such as Norway in an earlier report.
What Chile Wants From the Deal
Chile has 36 trade agreements with 66 economies, which give it access to about 89% of world GDP, according to BioBioChile. The US is Chile’s second-largest trading partner, and Estévez called it the second-largest investor after Canada.
The existing free trade agreement with the US remains in force despite the policy change, according to BioBioChile. The negotiation covers tariff cuts and the Reciprocal Trade Agreement framework, according to La Tercera.
On 26 August, Estévez said that Washington would send a new list of exemptions in the coming weeks. Her remarks on Wednesday set the limit on what that list can achieve.
What Is Not Known
No report we reviewed gives a date for the next round or for a signed agreement. We also do not know which products would join the zero-tariff list.
Judd gave no detail on what he knows about the talks. It is therefore unclear whether his optimism rests on a concrete offer.
What It Means for US Readers and Investors
US importers of Chilean salmon, fruit and wine should expect the 12.5% surcharge to stay on at least some products. That could keep prices higher at the shop counter until a deal is signed.
For investors, the speech shows that Chile is lowering expectations rather than promising a quick fix. A smaller exemption list would leave exporters with higher costs, while a signed agreement would give them certainty.
More: Chile news in English, every day from The Rio Times.
Frequently Asked Questions
What did Chile’s trade chief say about US tariffs?
Paula Estévez said on 7 October 2026 that Chile will not reach zero tariffs on all of its exports to the US. She said that is not the objective of the negotiation.
What tariff does Chile face in the US?
The US announced a 12.5% surcharge on Chilean goods on 23 July 2026 after a trade investigation into forced labour, according to Subrei. About 53% of the value of Chilean exports to the US still enters at zero tariff.
Which Chilean exports are affected?
Estévez named salmon, timber, wine and fruit, and said about half of salmon exports go to the US.
Is a deal close?
The US ambassador said he believes the talks will end very well for Chile, but gave no details. We found no deadline or date for a signed agreement.
Sources
Connected Coverage
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
In depth