Chile Told to Stand Up to Trump's Tariffs
Chile's Free Trade Agreement (FTA) with the United States, which took effect in 2004, is being tested by the Trump administration. The US has imposed a 12.5% tariff on most Chilean exports, citing human rights violations through forced labor as a concern.
The decision is seen as a clear example of how treaties are binding only when they serve US interests. In 2020, the US had already imposed 10% tariffs, but after the US Supreme Court ruled that it lacked authority to do so, Washington sought a new 'legal' basis for imposing an even higher tariff.
The selectivity of the tariffs is what's most revealing, Washington imposes tariffs on products where the cost to its economy is minimal, while excluding those considered strategic for industrial and military development, such as copper and lithium. This suggests that US policy is motivated by national interests rather than a genuine concern over human rights.
Chile should unapologetically defend its own national interests while respecting international law. In contrast to Chile's ruling class, which seems convinced that prudence lies in humbling itself in silence and waiting for the storm to pass, Canada quickly grasped this reality under the leadership of Mark Carney.
Canada launched campaigns to prioritize consumption of Canadian products, discourage tourism to the United States, remove US products from their markets, and even debate restrictions on strategic exports. Chile should follow suit and prioritize consumption of Chilean products or those from countries that respect international commitments.