Chile’s Kast courts China day after US hits exports with forced labour tariff

Chilean President Jose Antonio Kast met with China's ambassador to Santiago, Niu Qingbao, on Friday morning at the La Moneda Palace. This was the first encounter between the two since Kast assumed office in March. The meeting aimed to discuss their bilateral agenda, the upcoming trip of the Chilean Foreign Minister to China, and preparations for Kast's participation in the Apec leaders' meeting in Shenzhen.

The meeting occurred a day after the U.S. Trade Representative confirmed a 12.5% tariff on Chilean imports, justified by Chile's failure to prevent imports produced with forced labor. This tariff, effective Friday, affects industries such as salmon, timber, and food, but excludes copper, Chile's largest export. Kast reiterated the country's intent to negotiate better trade conditions with the U.S. Despite the tariff, Chile remains heavily reliant on China for exports, with 37% of goods exported to China, mainly copper, lithium, lemons, and cherries.

Chile also imports 25% of its consumption from China, with bilateral trade valued at $65.33 billion in the previous year. The U.S. remains Chile's largest source of foreign direct investment, with a cumulative portfolio of $12.5 billion against China's $4.6 billion.