A Chilean economist has warned that the country's total salmon export volume of the year will decrease due to U.S. tariff policy.
According to media reports, Chile exported nearly 100,000 tonnes of salmon to the U.S. in the first five months of this year, up 4.2 percent year on year, with total sales surpassing 1.12 billion U.S. dollars.
However, Cristian Andres Delgado, researcher at the School of Economics, Business, and Government at San Sebastian University, warned that the U.S. tariffs have prompted buyers to stockpile salmon in advance, which temporarily boosted shipments but is expected to weigh on exports for the rest of the year.
"For [Chile,] the U.S. is a key customer for the salmon industry, accounting for 40 to 50 percent of our exports. [Salmon] is a product with a highly elastic market. So when tariffs [are imposed], it naturally triggers early buying by consumers. But eventually, this leads to a decline in overall export volume. [We estimate that] salmon exports will drop by 10 to 15 percent this year," said Delgado.
According to a study by the San Sebastian University and the industry association SalmonChile in April, 42 percent of Chilean salmon exports are sent to the U.S., accounting for 55 percent of the American salmon market.
The 10-percent tariff announced by the U.S. in April could potentially reduce salmon exports by 571 million U.S. dollars, with a further decrease of 53 million U.S. dollars due to slower global growth, totaling a loss of 623 million U.S. dollars in exports.
Economist warns Chilean salmon exports to shrink due to US tariffs
Economist warns Chilean salmon exports to shrink due to US tariffs
