Milei bows to Trump’s tariff pressure, vows legislative changes to protect Argentine exports

Argentine President Javier Milei promises to change legislation to guard Argentine exports from President Donald Trump’s new tariffs.

He clarified that his country will not pursue retaliatory measures, claiming he is willing to work together with the US president.

Milei even commented, “Argentina is going to move forward to readjust the regulations so that we meet the requirements of the reciprocal tariffs proposal developed.” 

Milei said he’s fulfilled 9 of 16 requirements of Trump’s new tariffs

The United States has imposed a 10% tariff on Argentine goods entering the country. However, Milei has argued that he’s willing to compromise and introduce legislative reforms to meet the requirements of Trump’s new tariffs.

According to Milei, they’ve already taken care of 9 out of 16 requirements. He’s even asked his country’s Foreign Ministry and Commerce Secretariat to cater to the remaining requirements. 

He also pledged to address all other outstanding issues with the United States promptly. He believes all the changes his country will make will bring it closer to securing a free trade agreement with the US, anticipating a time without tariffs or trade restrictions. 

A while back, he even said he would withdraw from the Mercosur regional trade bloc should the need arise. He remains convinced that for Argentina to be great again, it will need to partner with the United States, and he is clearly ready to do what it takes to ensure a peaceful relationship between the two nations.

So far, the Argentine government is planning to harmonize tariffs on about 50 products. However, it said it would start with about 10 products.

Milei has consistently sought the favor of President Trump, hoping to protect Argentine interests

Milei had flown overnight to receive an award on Thursday at a right-wing gala at Mar-a-Lago. He had hoped to meet Trump, but, to his disappointment, the two did not meet. 

Milei has always publicly shown his adoration for Trump, praising him as a great leader, thus cultivating a somewhat smooth relationship with the American President.

He’s even tried to mimic some of Trump’s actions. 

Sometime after Trump declared that he would pull the United States from the World Health Organization, Milei ordered his country’s withdrawal from the agency. Moreover, after Trump pulled out of the Paris Climate Agreement, he argued that he would do so too.

His efforts may not have gone to waste with some of his ministers believing their president gained Trump’s favor. For starters, Gerardo Werthein, Argentina’s new foreign minister, claimed that every time Trump meets Milei, he always says, “I like this guy.” 

Furthermore, in some of his public appearances, Trump has acknowledged the Argentine leader, commending him for reducing inflation and enhancing economic growth in his country.

Some have suggested that Milei’s curried favor with the President is why Argentina only received 10% tariffs instead of the higher tariff rates applied to countries like China and India.

In 2024, Argentina’s exports to the US surged by over 13% year on year, culminating in almost $6.5 billion total. The growth even resulted in the country’s first trade surplus with the U.S. in nearly two decades, with a positive trade balance of $232 million. 

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