A tariff is a tax charged by a country's customs when goods cross its border, almost always on import. It makes the foreign product more expensive, protects local producers and raises money for the state. Chile has a general tariff of 6%, although in practice it charges far less thanks to its free trade agreements.
What a tariff is and what it is for
- Protecting local industry: the imported product costs more and the domestic one competes better.
- Raising revenue: it is income for the state.
- Pressuring another country: it is used as a negotiating tool or as retaliation.
The cost is paid first by the importer and is usually passed on to the final price. That is why a high tariff ends up making things more expensive for consumers in the country that imposes it.
What types of tariff exist
| Type | How it is calculated | Example |
|---|---|---|
| Ad valorem | A percentage of the value of the goods | 6% on a 1,000-dollar product: 60 dollars |
| Specific | A fixed amount per unit, weight or volume | 2 dollars per kilo |
| Mixed | Combines the two above | 5% plus 1 dollar per unit |
The most common in international trade is the ad valorem tariff.
How much the tariff is in Chile
| Item | Figure |
|---|---|
| General tariff | 6% |
| Average effective tariff | About 0.6% |
The gap is explained by the free trade agreements Chile has with its main partners, including the United States, China, Mexico and Canada: most products enter at a reduced rate or duty-free. The effective tariff figure comes from a 2025 report by the think tank Libertad y Desarrollo.
Why tariffs are back in the news
Because of US trade policy. On 20 February 2026 the US Supreme Court struck down the general tariffs the government had imposed under an emergency law, finding that setting them is up to Congress. The government responded with a temporary 10% global tariff based on another law, as the law firm Carey explained.
For Chile, the most sensitive point is copper. Since 2025 the United States has applied a 50% tariff on semi-finished copper products, but it left out refined copper cathodes, Chile's main shipment, as BioBioChile reported.
Trade between powers also moves on these taxes: see Russia and China: record trade and a pipeline that is going nowhere.
Frequently asked questions
What is a tariff?
A tax charged on goods when they enter a country.
Who pays a tariff?
The importer, who normally passes it on to the price the consumer pays.
How much is the tariff in Chile?
The general rate is 6%, but the average effective rate is around 0.6% because of free trade agreements.
