Chilean Wine Exports Shift Toward Brazil as US Sales Decline Amid Tariffs

Chilean wine producers are seeing strong growth in Brazil, their largest export market, as sales to the United States decline due to new tariffs. According to data from Wines of Chile, an association representing the country’s wine industry, exports to the U.S.—Chile’s second-biggest market by volume—fell by 13% in the first seven months of this year. The drop follows the imposition of a 10% tariff by the U.S. government, which had previously allowed Chilean wines to enter tariff-free.

Angelica Valenzuela, commercial director at Wines of Chile, explained that when the tariffs were first introduced, both producers and importers tried to absorb the extra costs. However, as the tariffs persisted, those costs began to be passed on to American consumers. Valenzuela described the current U.S. market as less dynamic and noted that demand is declining.

The situation is different in Brazil, where Chilean wine exports have increased by nearly 10% over the same period. Brazil now accounts for almost half of all Chilean wine exports, consolidating its position as Chile’s top destination for wine shipments. Valenzuela pointed out that there is significant potential for further growth in Brazil, driven by a rising number of regular wine consumers. She noted that more women and people with higher disposable incomes are buying wine in Brazil.

Chile’s marketing efforts in Brazil are now focused on promoting the country as a source of premium and sustainable wines. This strategy aims to build on Chile’s reputation and attract new consumers in a growing market.

Elsewhere, Chilean wine exports have shown mixed results. Shipments to China dropped by nearly 23%, which Valenzuela attributed to a general decline in wine consumption across China rather than trade barriers. Other markets such as Canada, Japan, Ireland, and South Korea have registered growth this year. In contrast, exports to Mexico, the Netherlands, and Britain have declined.

Despite these shifts in individual markets, overall Chilean wine exports have remained steady in 2025. Industry experts say that adapting marketing strategies and focusing on emerging markets like Brazil will be key for Chilean producers as they navigate changing global trade conditions and consumer preferences.