Javier Milei, President of Argentina, listens to speeches after the signing of a Board of Peace constitution throughout the Annual Assembly of the World Financial Discussion board in Davos, Switzerland, Thursday, Jan. 22, 2026.
Evan Vucci/AP
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Evan Vucci/AP
BUENOS AIRES, Argentina — Argentina and the US agreed Thursday to ease restrictions on one another’s items in an expansive commerce deal that reinforces a drive by President Javier Milei to open up Argentina’s protectionist economic system and a push by the Trump administration to cut back meals costs for People.
The deal, which slashes tons of of reciprocal tariffs between the nations, additionally displays the significance of Milei’s ideological loyalty to U.S. President Donald Trump, even because the chronically distressed South American nation lengthy remoted from the worldwide economic system has little to supply Washington in the way in which of financial reward or geopolitical clout.
Argentina’s radical libertarian chief has gone to dramatic lengths to show his devotion to Trump, reshaping his nation’s overseas coverage to align with the U.S. and championing Trump’s more and more aggressive interventions within the Western Hemisphere. Milei has traveled to the U.S. at the least a dozen occasions since coming into workplace and plans to go to Trump’s non-public Mar-a-Lago membership in Florida once more subsequent week.
The efforts have paid off. Final yr as market turmoil threatened to derail Milei’s free-market overhaul and drain Argentina’s overseas foreign money reserves forward of an important midterm election, Trump provided his ally a $20 billion credit score line. Milei prevented a foreign money devaluation and received a decisive victory within the election that despatched markets rallying.
A commerce deal between ideological allies
On Thursday Argentine Overseas Minister Pablo Quirno and U.S. Commerce Consultant Jamieson Greer mentioned they signed the commerce and funding settlement in Washington.
After imposing sweeping tariffs on its buying and selling companions, the Trump administration modified its tune final November in asserting framework offers with 4 Latin American nations, together with Argentina.
The White Home argued that the discount of tariffs on Argentine beef and Ecuadorian bananas, amongst different imports, would enhance the flexibility of American companies to promote merchandise overseas and relieve rising costs for American customers. The announcement additionally got here as Trump’s steep tariffs drew scrutiny from the Supreme Courtroom.
Argentina on Thursday grew to become the primary of the 4 nations to finalize its settlement with Washington. Quirno hailed it as a milestone not solely in Argentina’s alliance with the U.S., but additionally in Milei’s marketing campaign to rebuild the serial defaulter’s fame.
“Today Argentina sent a clear signal to the world,” he wrote on social media. “We are a reliable partner, open to trade and committed to clear rules, predictability and strategic cooperation.”
Concessions may revive criticism
Argentina will scrap commerce limitations on greater than 200 classes of products from the U.S., together with chemical compounds, equipment and medical gadgets, its overseas ministry mentioned. Extra politically delicate imports, like automobiles, stay cattle and dairy merchandise, will enter the nation tariff-free below authorities quotas.
These are key concessions as Argentine industries lengthy protected by steep tariffs fret about their skill to compete with American producers. Already home producers have seen their gross sales drop as Milei opens the economic system to an onslaught of low-cost Chinese language merchandise.
Washington, for its half, will eradicate reciprocal tariffs on 1,675 Argentine merchandise, Argentina’s Overseas Ministry mentioned, growing authorities export income by over $1 billion. The precise product record remained unclear however the White Home mentioned it included “unavailable natural resources” and components for pharmaceutical items, after Argentina agreed to enhance its patchwork mental property protections.
The U.S. additionally promised to evaluation its 50% taxes on Argentine metal and aluminum imports — a disappointment to producers in Argentina who anticipated the commerce settlement to eradicate the crippling tariff outright. The deal additionally reveals the U.S. quadrupling the present quantity of Argentine beef it imports at a decrease tariff price to 100,000 tons per yr.
An inflow of Argentine beef
An inflow of Argentine beef may reignite criticism from cattle ranchers and Republican lawmakers who voiced outrage final October when Trump first floated plans to extend imports of Argentine beef to carry costs down.
The transfer adopted Trump administration’s $20 billion lifeline and direct purchases of Argentina’s dollar-denominated bonds that rankings companies had been classifying as “junk” and of its depreciating foreign money that traders had been dumping in droves.
The backlash was instant. Trump’s MAGA base questioned the necessity to bail out a far-flung nation that has by no means been a pure U.S. commerce associate: The 2 nations export most of the identical issues, straight competing in markets of soy, corn, wheat, meat and oil.
Democratic lawmakers had been livid that Trump was staking taxpayer cash on a political present to an buddy.
That criticism continues, with U.S. Sen. Elizabeth Warren, the highest Democrat on the Senate Banking Committee, interesting Thursday to Treasury Secretary Scott Bessent to finish the $20 billion bailout.
