LIMA -Newly implemented U.S. tariffs will have a moderate impact on Peru’s economy, the chief economist of the Andean nation’s central bank said on Friday.

Peru, a major exporter of metals and agricultural commodities to the United States, now faces 10% tariffs on around 70% of its exports to the country, central bank economist Adrian Armas said.

The rest fall under an exemption made for sectors such as energy and critical minerals, he added.

“There will be an impact (from the U.S. tariffs), but with the current information, it is expected to be moderate, given that our exports do not directly compete with those of the United States,” Armas said.

Peruvian firms are prepared to hold on to their footprints in the U.S. despite the tariffs, he added, saying the central bank had spoken with local executives on the matter.

The Andean nation’s economy likely grew around 4% in the first quarter of this year, Armas added, which shows Peru’s strong performance compared to its regional peers. The INEI is set to release official GDP data mid-May.

On Thursday, Peru’s central bank held its benchmark interest rate at 4.75% for the third consecutive time. The country has one of the lowest interest rates in Latin America and has gradually reduced its key rate from 7.75% since September 2023.

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