After the United States announced tariffs of 25% on Chinese technological products, the Asian power responded, announcing reciprocal tariffs on American goods. In this way, the Ministry of Commerce of China reported that 128 products of seven categories would have a 25% tax on pork, nuts, wine, among others.
Given this scenario, Chilean exporters observe with caution, since they could open important opportunities for Chilean products, such as wines. This situation between China and the US could generate advantages in prices, since Chilean wines would become substitutes for goods that will become more expensive for Chinese citizens.
Despite the comparative advantage, there are doubts about protectionist measures, since in the medium and long term, that ends in the same way negatively impacting a country like Chile.
In the short term it would tend to think that there will obviously be a benefit for Chilean wines, but these are not the only ones that are in competition. There are other countries. In addition, we know how it starts, but not how it ends, so these long-term protectionist measures are detrimental to Chile.
This is bread for today and hunger for tomorrow, because Chile as an open economy does not suit protectionism. The competition is good in every way.
This trade war has repercussions in countries like Chile that have an open economy, and measures of this type affect the country, because it is the consumers who end up paying the bill when tariffs go up.
China will take legal action within the framework of the World Trade Organization (WTO), but called on the authorities in the United States to resolve the differences through dialogue and consultations to avoid damaging the overall situation of Sino-US cooperation.
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