Chilean wines boom in Brazil as tariffs dampen US demand

SANTIAGO (Reuters) -Chile's wine exports to its top market of Brazil are booming, helping to offset a decline in sales to United States partly due to tariffs, according to export data and industry experts.  Data from Wines of Chile, an association of wine producers, shows purchases from the U.S., Chile's second-biggest market by volume, have fallen 13% in the first seven months of the year as President Donald Trump's administration imposed tariffs.  "We went from zero tariffs to 10%," said Angelica Valenzuela, Wines of Chile’s commercial director. "Every time you have a tariff, or some roadblock, there's some kind of freeze, or slowdown." Valenzuela said initially, wine producers and importers absorbed the cost of tariffs, but "since it's something that's remained longer, the cost started transferring to the consumer." "What we see now is an American market that's less dynamic and is declining," she added. Chile's exports to China have dropped by nearly 23% over the same period, but she attributed that to lower wine consumption, which has affected most countries that sell to China. In contrast, Brazil is booming, consolidating its position as Chile's top export destination, with shipments jumping nearly 10% over the period. Chile accounts for nearly half of Brazil's import market, Valenzuela said, adding there was "enormous expansion potential." The number of regular wine consumers in Brazil is growing, especially among women and consumers with more disposable income, Valenzuela said. She said Chile's marketing strategy will now focus on strengthening the country's image as a source of premium and sustainable wines. Overall, Chile's wine exports have remained steady in 2025. Canada, Japan, Ireland and South Korea all registered growth while Mexico, the Netherlands and Britain declined. (Reporting by Nicolas Cortes and Reuters TV; Writing by Alexander Villegas; Editing by Jamie Freed)

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