International media reported that US President Donald Trump is reportedly considering banning sales for 90 days to curb rising domestic prices ahead of the midterm elections.

  Such a measure would affect Chile, as it imports 40 percent of the refined diesel used in the country, with the majority sourced from the United States.

  According to market analyst Ignacio Mieres, reduced supply would force Chile to compete for alternative shipments at higher prices and—in an escalating scenario—could even lead to physical availability issues.

  The impact would extend to the broader economy, given that diesel accounts for 90 percent of fuel used in large-scale mining and 35 percent in the agricultural sector, while also representing about 15 percent of an average mine’s operating costs.

  All of this could be passed on to transport and production costs and drive up inflation, the analyst noted, as cited by CNN Chile.

  President Jose Antonio Kast admitted that a reduced diesel supply would trigger a chain reaction.

  “If there is 10 percent less available globally, that will have a very harsh, very serious knock-on effect,” he stated.

  Kast affirmed that his government is analyzing mitigation measures for such a scenario.

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