Argentina and the United States reached a broad trade and investment agreement aimed at reducing hundreds of reciprocal tariffs. The move signals a major shift in Argentina’s traditionally protectionist economic model. The deal supports President Javier Milei’s push to open Argentina’s economy while aligning with the Trump administration’s goal of lowering food prices for American consumers. Beyond economics, the agreement highlights Milei’s strong ideological alignment with US President Donald Trump, despite Argentina’s limited economic and geopolitical leverage.
Milei has reshaped Argentina’s foreign policy to closely mirror US interests, making frequent visits to the United States and openly backing Trump’s regional agenda. That loyalty proved strategic. When Argentina faced market instability last year, Trump extended a $20 billion credit that helped Milei stabilize the currency and secure a midterm election victory.
A trade deal between ideological allies
The agreement was formally signed in Washington by Argentine Foreign Minister Pablo Quirno and US Trade Representative Jamieson Greer. Argentina became the first Latin American country to finalize one of the framework trade deals Trump announced last November after easing its aggressive tariff stance.
The White House framed the deal as mutually beneficial. Lower tariffs on Argentine agricultural products as a way to reduce US consumer prices while improving market access for American firms. For Argentina, the deal serves as a reputational reset, portraying the country as a reliable, rules-based trading partner after years of economic instability and default.
Concessions could revive criticism
Argentina agreed to eliminate trade barriers on over 200 categories of US goods, including machinery, chemicals, and medical equipment. Sensitive sectors such as vehicles, dairy, and live cattle will enter under tariff-free quotas, raising concerns among domestic producers who already face pressure from cheaper imports, particularly from China.
In return, the US will remove tariffs on 1,675 Argentine products, potentially boosting Argentina’s export revenue by more than $1 billion. The agreement also expands access for Argentine beef and includes US commitments to review, but not immediately remove, steep tariffs on Argentine steel and aluminum. Some Argentine manufacturers expressed disappointment at the limited relief.
An influx of Argetine beef
The expanded quota for Argentine beef — up to 100,000 tons annually at lower tariff rates — could reignite political backlash in the United States. Ranchers and Republican lawmakers have previously criticized the policy, arguing it undermines domestic producers.
Criticism also persists over Trump’s financial support for Argentina, including bond purchases and currency intervention during its crisis. Lawmakers from both parties question the rationale for backing a country that competes directly with the US in key agricultural exports. Democratic opposition remains strong, renewing calls to end the $20 billion bailout, framing it as an unjustified political favor rather than sound economic policy.
Reference
The Associated Press. (2026, February 6). Argentina and U.S. sign a major trade deal to slash tariffs, boost political alliance. NPR. https://www.npr.org/2026/02/06/nx-s1-5704104/argentina-us-trade-deal