By Miguel De la Vega Polanco.The new global trade landscape present a series of challenges for our country, making it necessary to improve the conditions under which exports are developed to achieve better medium- and long-term results.
Global trade was greatly shaken on April 2 of this year by the announcement of the United States' new tariff policy, which increased the entry costs of foreign products into the large US market. Tariffs for 185 economies ranged from 10% for a group of countries, including Peru, to 50% for other nations, such as Vietnam (46%), Thailand (37%), China (34%), India (27%), South Korea (25%), Japan (24%), and the European Union (20%).
These measures, known as "reciprocal tariffs," seek to strengthen industries and reduce the trade deficit of the world's largest economy, according to a report published in the newspaper El Peruano.
However, following the impact on markets, with strong repercussions from falls in stock markets around the world, such as Wall Street, and the weakening of the dollar, a 90-day suspension was announced on April 9 for countries with tariffs above 10%, with the exception of China. Meanwhile, Peru continues to impose a 10% tariff on products shipped to the United States.
How does this measure affect us?
Peruvian exports in 2024 reached a record high, with shipments of $74.645 billion, of which the United States accounted for $9.528 billion. In a more detailed analysis, a recent report by the Cien-Adex Exporters Association's Global Economy and Business Research Center estimated that 78% of the value of Peruvian shipments to the US market, approximately $7.43 billion, would be affected by the 10% tariff.
However, certain Peruvian export products have been exempted from this tariff, and come from sectors such as mining (except for copper), chemicals, and hydrocarbons, among others.
Among the main products impacted by the 10% tariff are agro-industrial products ($4.408 billion shipped to the United States in 2024), textiles and apparel ($839.7 million), fishing ($355 million), and jewelry ($183 million), among others.
How prepared is Peru for this new scenario?
In the opinion of former Peruvian Minister of Economy and Agriculture, Ismael Benavides, in this new global trade scenario, which is still in the process of implementation, Peru has certain advantages over other competitors for the US market.
"We're on the same level as the countries that have the lowest tariff of 10%; thank God, US didn't impose us the highest tariff. However, it also opens up some opportunities for us in the US market itself, because, for example, in textiles, we will be able to compete against Vietnam, Cambodia, and China itself. In the case of agricultural exports, Peru is competitively better positioned than Chile, Argentina, or Australia, which are much further from the United States than we are," he explained to the newspaper El Peruano.
"But we have to be able to compete on price and quality," he emphasized.
He noted that in recent years, Peru has not increased its agricultural export volumes and that the growth observed was due to price issues, especially for coffee and cocoa.
“So I think we have to resume volumes, since we can compete with an advantage over our competitors like Chile and Argentina, which have much higher production costs,” he emphasized.
Benavides Ferreyros pointed out that this 10% tax also applies to other competitors like Colombia, which “levels” the playing field, and at least is “the positive” aspect of this global situation.
“But the worrying thing that could happen is that the United States economy could enter a recession, with a drop in consumption, and that could have a bigger impact than tariffs, because the uncertainty and the change in economic policy could lead to a decline in growth or a recession,” he explained.
Considering that almost 60% of total Peruvian exports to the United States are agricultural products, Benavides believes it is important for Congress to approve the new Agrarian Promotion Law in order to boost food exports. He noted that Law No. 27360 was repealed in 2020, changing the rules of the game.
He said that modern agro-export agriculture has very long horizons.
Asia
Furthermore, Benavides highlighted the importance of further developing trade with Asia, opening new free trade agreements with India, Pakistan, and Indonesia, which offer niche markets for Peruvian products.
In this regard, he noted that the new Chancay port infrastructure, which shortens transit times between China and Asia with Peru and South America from 35 to 23 days, allows Peruvian products to reach Asian markets in better condition and quality.
He also emphasized that the largest capital market in the world continues to be the United States, and that Peru must therefore become attractive for these resources.
“Obviously, China also has a significant stake in the Peruvian economy, but it is the fifth-largest foreign investor, ahead of the United Kingdom, the European Union, and the United States,” he added.
“What China needs to do in Peru is bring new things, because with the exception of the port of Chancay, it has bought existing companies. I think it should participate in commuter rail, public-private partnerships, highways, among others,” he stated.
Benavides noted that Peru must emphasize improving its competitiveness in all productive sectors.
“In that sense, I believe that the initiatives of the Minister of Economy (José Salardi) to unblock, deregulate, and improve infrastructure are very important, because all of this helps us lower our costs and become more competitive,” he emphasized.
Strengths of the Peruvian export sector
The director of Cien-Adex, Edgar Vásquez, highlighted that the Peruvian export sector has four advantages over other competitors.
The first is monetary stability, with a macroeconomy that provides support; the second is the territory, which allows for a variety of agricultural exports of fruits, vegetables, and Andean grains.
The third is its innovative, entrepreneurial, and resilient business sector despite the difficulties. “Who could have thought 15 years ago that we would be leaders in blueberry exports?” he told the official newspaper El Peruano.
The fourth is its high level of integration with the world. “Peru is the eighth most integrated country in the world. We have 22 free trade agreements with 58 countries and economies that allow us to diversify,” he emphasized.
He also emphasized that Peru is “following the right path” to resolve the 10% tariff situation by engaging in direct negotiations at the highest level with the Office of the United States Trade Representative.
For the negotiations, Vásquez suggested that Peru should emphasize its “strategic relationship” with the United States through the Foreign Trade Agreement (FTA). "It's a basic condition that differentiates us. Only 14 countries in the world have a free trade agreement with the United States, and Peru is one of them," he said.
He also considered it necessary to highlight in the talks that the trade surplus is in favor of the United States. "They export more to us than we sell to them, which isn't bad, because we import machinery that Peru doesn't currently manufacture. Our trade offers are very complementary," he emphasized.
He also highlighted the strength of the technical teams at the Ministry of Foreign Trade and Tourism (Mincetur) and the Foreign Ministry. "We have to let them do their work, support them, and obviously, I'm sure that with that we could achieve good results," he stated.
Data
- Global food trade is expected to grow 1.5% this year, less than the 2% in 2024, which represents an opportunity for Peruvian agricultural exports, according to Cien-Adex.
- Peruvian agricultural exports are also expected to grow 6.6% in 2025, despite the new global trade scenario, reaching a record $13.4 billion.
- Peru is the ninth-largest food exporter to the United States.
More in Andina:
(END) DOP/SDD/MDV
Published: 4/28/2025