Luis Chadwick Vergara, president of Chilean producer and exporter San Clemente, lays out the math: margins in Chilean fruit exports typically run 6–8%, and a 12.5% U.S. tariff doesn't just eat into profits — it consumes them entirely. The piece argues that growers face an impossible choice between absorbing the hit or raising prices and losing demand to competitors.
The consequences extend beyond balance sheets. Higher tariffs reduce liquidity, constrain investment in future seasons, and pressure the entire downstream chain — laborers, packers, transporters, and cold storage operators. Chile exports to roughly 40 markets, but the U.S. is a critical destination for grapes, cherries, and stone fruit, making tariff exposure particularly acute.
This is the view from the ground in Chile as trade negotiations between the two countries continue. Buyers sourcing Chilean product should watch whether tariff costs begin showing up in landed prices or whether suppliers absorb the pressure through reduced quality investment.