Argentina and the United States have reached a sweeping trade agreement aimed at lowering barriers on each other’s goods, a move that supports President Javier Milei’s push to open Argentina’s traditionally protectionist economy while helping the Trump administration address food prices at home.
The deal significantly reduces hundreds of reciprocal tariffs between the two countries and underscores the close political alignment between Milei and US President Donald Trump. While Argentina has long struggled with economic instability and limited global influence, the agreement highlights how Milei’s ideological loyalty has helped deepen ties with Washington despite offering modest economic or geopolitical returns to the US.
Since taking office, Argentina’s libertarian president has reshaped the country’s foreign policy to closely mirror US priorities, openly backing Trump’s assertive stance in the Western Hemisphere. Milei has visited the United States more than a dozen times and is expected to return to Trump’s Mar-a-Lago resort in Florida next week.
Those efforts have delivered tangible results. Last year, as financial turbulence threatened Milei’s free-market reforms and foreign currency reserves ahead of a key midterm election, Trump extended a $20 billion credit line to Argentina. The support helped Milei avoid a currency devaluation and secure a decisive electoral win, sending markets higher.
On Thursday, Argentine Foreign Minister Pablo Quirno and US Trade Representative Jamieson Greer confirmed that the trade and investment agreement was signed in Washington.
After initially imposing broad tariffs on global trading partners, the Trump administration shifted course last November, unveiling framework agreements with four Latin American countries, including Argentina.
The White House said reducing tariffs on imports such as Argentine beef and Ecuadorian bananas would both improve access for US exporters and help ease rising consumer prices. The announcement also came as Trump’s tariff policies faced scrutiny from the Supreme Court.
Argentina is the first of the four countries to finalise its deal. Quirno described the agreement as a turning point for Argentina’s international standing and Milei’s efforts to restore credibility after years of economic turmoil.
“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.”
Under the agreement, Argentina will remove trade barriers on more than 200 categories of US goods, including chemicals, machinery and medical devices, according to its foreign ministry. More sensitive products such as vehicles, live cattle and dairy will be allowed in tariff-free under government quotas.
These concessions may fuel domestic backlash, as industries long shielded by high tariffs worry about competing with US manufacturers. Local producers are already feeling pressure as Milei opens the market to an influx of cheaper Chinese goods.
In return, Washington will eliminate reciprocal tariffs on 1,675 Argentine products, a move Argentina’s Foreign Ministry says could boost export revenues by more than $1 billion. While the full list has not been disclosed, the White House noted it includes “unavailable natural resources” and pharmaceutical inputs, following Argentina’s agreement to strengthen its intellectual property framework.
The US also agreed to review its 50% tariffs on Argentine steel and aluminium falling short of Argentine manufacturers’ hopes for a full repeal. Meanwhile, the deal increases the quota for Argentine beef imports at reduced tariff rates fourfold, to 100,000 tonnes per year.
The planned surge in Argentine beef imports is likely to revive opposition from US cattle ranchers and Republican lawmakers, who voiced strong objections last October when Trump first proposed boosting imports to curb domestic prices.
That proposal came on the heels of the $20 billion financial lifeline and direct US purchases of Argentina’s dollar-denominated bonds assets many investors had labelled “junk” as well as interventions to support Argentina’s weakening currency.
Critics from Trump’s MAGA base questioned why US resources were being used to support a distant country that competes directly with American farmers in key markets such as soy, corn, wheat, meat and oil.
Democrats were equally critical, accusing Trump of using taxpayer money to reward a political ally. That opposition persists, with Senator Elizabeth Warren, the leading Democrat on the Senate Banking Committee, calling on Thursday for Treasury Secretary Scott Bessent to end the $20 billion bailout.
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