After confirmation of 25% tariffs on Argentine steel and aluminum exports, Argentina could be even more harmed by Donald Trump’s decision to set “reciprocal” tariffs. The president of the United States announced Thursday that it will impose to the products that enter that country the same level of taxes that the counterpart applies to the US goods exported there.
Although the details are not yet known, the specialists agree that the measures will not be free for Argentina, one of the countries with the highest levels of tariffs for exterior products and exports US $ 6.5 billion per year to the United States . “If applied to all products for everyone, Argentina is in trouble“Marcelo Elizondo said, specialist in foreign trade.
The head of the DNI consultant explained that Argentina applies an average tariff of 12%, which depends on Mercosur, while the United States average tariff rate is 2.7%. “That is more difficult to defend if Argentina asks for an exception to continue entering steel and aluminum to the United States. If reciprocities begin, it will be difficult to enter and the cost will be higher for us than other countries, “Elizondo said.
In 2024, The United States was the second largest destination of Argentine exports of goods (after Brazil) and the third largest supplier in Argentina (after Brazil and China). Sales to that country include crude oil, gold, gasoline, propane, lithium carbonate, meat, wines, shrimp, soy beans, along with aluminum and steel, two products reached this week by the tariffs set by Trump to those metals.
“Argentina has a more limited trade, what is affecting are the tariffs on aluminum and steel, the norm would have to be seen well, I think it is more thinking for China and some threat to the EU, but but All countries that have trade we will be affected, we always had a conflict trade with the United States for having similar productive structures, “said the former Minister of Production, Dante Sica.
The head of the consultancy Abeceb explained that both countries had commercial defense measures that affected trade: in 2000, the United States stated honey and biodiseel anti -dumping measures Argentines; In 2017, Trump imposed “compensatory tariffs” from 50.3 to 64.2% to biodiesel – a market of US $ 1.2 billion – and suspended the importation of lemons; And in 2018, he set 25% taxes to steel and 10% to aluminum.
Now, the government is committed to obtaining a favorable sign during the trip that Javier Milei will undertake to Washington, where he is expected to take advantage of his good personal relationship with Trump to achieve some exceptions. “I think he wants to make favors to friends leaders, we will see if Argentina achieves the exception. Macri succeeded with 180,000 tons of steel and aluminum, and Argentina seeks the same now“Elizondo said.
On that occasion, the negotiations took several months and Argentina had to endure increased tariffs during that period. In this case, It is more complicated because Argentina’s tariffs depend on Mercosur. Milei in turn encourages a free trade agreement with the United States, something that could actually be an economic complementation agreement with some tariff preference and investments.
Due to the low tariff levels of the northern power, Argentina has no incentives to close a FTA with that country. Within that framework, specialists speculate that Trump could offer some relief in exchange for Milei to give in points of interest to the White House. Washington signed a cooperation agreement with Argentina in “Critical Minerals” in Augustsuch as copper and lithium, keys to Silicon Valley and its military industrial complex.
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