Argentine president Javier Milei expressed its intentions to negotiate a trade agreement with the United States which could eliminate tariffs on certain exports, aligning with its libertarian free market policies and its ideological affinity with the American president Donald Trump. The reports suggest that the discussions have focused on making a zero-variety framework for 50 Argentinian export products, aimed at improving bilateral trade. Currently, the United States has imposed a reference rate of 10% on Argentinian goods as part of a wider reciprocal tariff policy announced by Trump, from April 5, 2025, with higher rates applied to other countries.
The Government of Argentina considers its placement in the minimum tariff support as a diplomatic success and derives from this position to put pressure for an exemption or a complete price agreement. Milei has highlighted progress in the resolution of commercial obstacles, negotiations would have responded to regulatory adjustments to respond to requests for American reciprocity. Although no official agreement has yet been signed, the bases are laid by high -level meetings, such as those between the Argentinian Minister for Foreign Affairs Gerardo Wertheim and American secretary of state Marco RubioAs well as Milei’s planned discussions with Trump.
The elimination of prices on the main Argentinian products – including potentially agricultural products such as beef, soybeans and wine or industrial items – would make them more competitive on the American market. This could increase export income, essential to the economy of Argentina, which has been faced with high inflation and shortages of foreign currency. American consumers could see prices below Argentinian imports, especially in food and raw materials, improve purchasing power and diversify the supply chains for other world suppliers.
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A trade agreement could encourage American companies to invest in Argentina, attracted by cheaper access to the American market and Milei pro-business reforms (for example, deregulation, tax reductions). This could stimulate job creation and economic growth in Argentina. Argentina could reduce its trade deficit with the United States if exports are increasing, although it depends on whether the United States also gains access without tariff to Argentina, which could increase American exports such as machines or technology. A Zero-Tariff agreement would point out an alliance of deepening between Milei and Trump, rooted in shared ideological principles such as free market capitalism and anti-socialism. This could raise the geopolitical position of Argentina as an American partner favored in
For Milei, obtaining this agreement would strengthen its inner credibility, to prove that its unconventional approach gives results. For Trump, he could highlight his “America First” policy adapting to strategic partnerships, counter the criticism of isolationism. The pursuit by Argentina of a bilateral agreement is likely to contract relations with the partners of Mercosur (Brazil, Paraguay, Uruguay), which can see it as a violation of the rules of the common external tariff of the block. This could lead to a diplomatic friction or even to the exit of Argentina from Mercosur, a movement that Milei alluded to the favor. An American-Argentinian agreement could put pressure on other countries in Latin America to seek similar arrangements, which could reshape regional commercial models. Brazil, a heavyweight of Mercosur, could consider this as a competitive threat, causing counter-negociations.
Argentina’s pivot towards the United States could weaken China’s economic point of view in the region, where Beijing was a major buyer of Argentinian products and an investor in infrastructure. This is aligned with American efforts to counter Chinese domination in the world South. In case of success, this could inspire Trump to pursue zero tariff features with other ideologically aligned nations, passing the American trade policy from general prices to selective partnerships. However, this could also cause reprisals from excluded countries.
Risks and uncertainties
Regulatory alignment, approval of the US Congress (if necessary) and Mercosur’s response could delay or derail the agreement. The economic instability of Argentina could also undermine its ability to maintain an increase in trade. If the agreement strongly promotes American exports or specific Argentinian sectors (for example, agro-industry), it could exacerbate inequalities within Argentina or the US national industries in the United States faced with cheaper imports. The longevity of the agreement could depend on Milei and prevail over power, because successors may not prioritize or honor it. A zero-barter pact could turbocate the economy of Argentina and cement an American strategic partnership, but it risks the regional backlash and depends on the navigation of complex compromises.
In the event of success, this could mark a significant change in trade relations, potentially making Argentina the first country to obtain zero-tale arrangement with the United States under the administration of Trump. However, challenges remain, including the obligations of Argentina Mercosurwhich prevents individual members from negotiating bilateral free trade agreements outside the block. For the moment, the zero-tail objective remains ambitious pending formal ratification and the resolution of these regional constraints.
