Dec 26, 2016, 1:08
The Pacific Tsunami Warning Center (PTWC) had earlier issued a warning of hazardous waves for some coasts within 1,000km of the epicentre, possibly at heights of 1m to 3m.
There were no immediate reports of casualties, though electricity was cut to some communities.
The Chilean Navy also issued a tsunami warning, Reuters reported.
A tsunami warning has been lifted after a powerful 7.6 magnitude quake off the southern coast of Chile on Sunday.
In 2010, Chile was hit with an 8.8 magnitude quake off the south-central coast.
The tsunami alert was lowered in Lagos, where residents are still being required to stay at least 80 meters (262 feet) away from shore.
The area hit by Sunday's quake was south of Valdivia, Chile, where 1,655 people died in a 1960 quake ranked by the USGS as the most powerful recorded in Chile.
The quake struck as Chileans were were their families celebrating Christmas. All shops were closed.
The quake caused a tsunami, forcing officials to order the evacuation of more than 1 million people living along the coast.
Chile sits on an arc of volcanoes and fault lines circling the Pacific Ocean known as the "Ring of Fire".
It follows an 8.3 magnitude quake which hit the country last September killing 13. A coastal evacuation order had limited the number of casualties.
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