Tariffs Imposed by Trump and Potential Impact on Chile
Arguing that it is necessary to “revitalize national production and protect key industries for the United States,” President Donald Trump announced 25% tariffs on steel and aluminum in certain countries, sparking global uncertainty.
For national economists, this scenario “would not have such a direct impact on Chile,” though they urge close attention to a possible reorganization of global trade.
Starting on March 4, 25% tariffs on steel and aluminum will take effect, primarily affecting countries such as Mexico, Canada, and Brazil.
This adds to a series of statements from U.S. President Donald Trump that have put emerging economies worldwide on alert.
“Volatility is not good,” experts warn, especially when inflation remains persistent. According to the latest Economic Expectations Survey by the Central Bank, inflation is projected to close at 4.1% in 2025.
As a result, the United States has become a key factor in shaping Chile’s economic outlook. Ricardo Bustamante, Deputy Manager of Studies at Capitaria, addressed the arguments justifying Trump’s announcement, while also suggesting that it may be part of “a political strategy,” as seen before.
Juan Ortiz, Senior Analyst at the Economic Context Observatory of UDP, agreed with this assessment but pointed out that these tariffs could open the door for similar measures on copper—where the impact would be different.
“If implemented, this increase will put pressure on costs in the United States and, consequently, create inflationary pressure that will make monetary normalization more difficult. This would affect global copper demand and prices.”
Juan Carlos Guajardo, Executive Director of Plusmining, stated that it is still too early to determine specific effects. However, he emphasized that since there is a Free Trade Agreement in place, the U.S. government would need solid arguments to justify imposing such measures against Chile.
Lastly, economists and other foreign policy actors stress the need for precautionary measures against individuals who misuse the Visa Waiver Program.
Source: Biobío Chile