BUENOS AIRES — Argentina and the United States on Thursday finalized a wide-ranging trade and investment agreement that sharply reduces reciprocal tariffs, advancing President Javier Milei’s push to open Argentina’s protectionist economy and the Trump administration’s effort to lower food prices for U.S. consumers.
Signed in Washington by Argentine Foreign Minister Pablo Quirno and U.S. Trade Representative Jamieson Greer, the pact cuts hundreds of duties on goods traded between the two countries. The accord is part of a broader U.S. initiative announced in November to negotiate framework deals with several Latin American nations, aimed at easing imports — from Argentine beef to Ecuadorian bananas — and addressing rising costs for American shoppers.
The agreement also underscores the close political alignment between Milei and U.S. President Donald Trump. Since taking office, Milei has realigned Argentina’s foreign policy toward Washington, repeatedly traveled to the U.S., supported Trump’s regional interventions and has said he will visit Trump’s Mar-a-Lago club next week. Those ties delivered tangible backing last year when the Trump administration offered a $20 billion credit line as Argentina faced market turmoil and dwindling foreign exchange reserves ahead of a midterm election. That support helped Argentina avoid a currency collapse and contributed to Milei’s later electoral victory.
Details and domestic concerns
Under the deal, Argentina will lift barriers on more than 200 categories of U.S. goods, including chemicals, machinery and medical devices. More politically sensitive items — such as vehicles, live cattle and dairy products — will enter tariff-free under government quota arrangements. Those concessions have alarmed Argentine manufacturers and agricultural producers who long relied on steep tariffs; some sectors have already felt pressure as Milei opens the market to cheaper imports, notably from China.
Washington agreed to remove reciprocal tariffs on 1,675 Argentine products, which the Argentine foreign ministry says will raise export revenue by more than $1 billion. The U.S. delegation said the list includes certain natural resources and pharmaceutical ingredients, and noted Argentina has committed to strengthen fragmented intellectual property protections. The White House also said it would review the roughly 50% duties it currently imposes on Argentine steel and aluminum, a concession that fell short of Argentine manufacturers’ hopes for full removal. The pact also raises the permitted U.S. imports of Argentine beef at a lower tariff level to 100,000 tons annually.
Political backlash
The expanded flow of Argentine beef into the U.S. market is likely to reignite criticism from American cattle ranchers and some Republican lawmakers who objected last October when the administration first floated greater Argentine beef imports to help lower domestic prices. Critics from Trump’s MAGA base questioned aiding a distant competitor in key commodities like soy, corn, wheat, meat and oil, while Democrats framed the earlier $20 billion support as a politically motivated favor for an ally. The criticism persisted on Thursday, with Sen. Elizabeth Warren urging Treasury Secretary Scott Bessent to end the U.S. support package.
The agreement marks a significant step in Milei’s bid to reposition Argentina internationally and reduce trade barriers, but it also raises domestic tensions in both countries as industries and political opponents digest its economic and political consequences.