Argentina and US sign a major trade deal to slash tariffs and boost a
political alliance
[February 06, 2026]
By ISABEL DEBRE
BUENOS AIRES, Argentina (AP) — Argentina and the United States agreed
Thursday to ease restrictions on each other's goods in an expansive
trade deal that boosts a drive by President Javier Milei to open up
Argentina’s protectionist economy and a push by the Trump administration
to reduce food prices for Americans.
The deal, which slashes hundreds of reciprocal tariffs between the
countries, also reflects the importance of Milei's ideological loyalty
to U.S. President Donald Trump, even as the chronically distressed South
American nation long isolated from the global economy has little to
offer Washington in the way of economic reward or geopolitical clout.
Argentina's radical libertarian leader has gone to dramatic lengths to
prove his devotion to Trump, reshaping his country's foreign policy to
align with the U.S. and championing Trump's increasingly aggressive
interventions in the Western Hemisphere. Milei has traveled to the U.S.
at least a dozen times since entering office and plans to visit Trump's
private Mar-a-Lago club in Florida again next week.
The efforts have paid off. Last year as market turmoil threatened to
derail Milei's free-market overhaul and drain Argentina's foreign
currency reserves ahead of a crucial midterm election, Trump offered his
ally a $20 billion credit line. Milei avoided a currency devaluation and
won a decisive victory in the election that sent markets rallying.
A trade deal between ideological allies
On Thursday Argentine Foreign Minister Pablo Quirno and U.S. Trade
Representative Jamieson Greer said they signed the trade and investment
agreement in Washington.
After imposing sweeping tariffs on its trading partners, the Trump
administration changed its tune last November in announcing framework
deals with four Latin American countries, including Argentina.
The White House argued that the reduction of tariffs on Argentine beef
and Ecuadorian bananas, among other imports, would improve the ability
of American firms to sell products abroad and relieve rising prices for
American consumers. The announcement also came as Trump's steep tariffs
drew scrutiny from the Supreme Court.
Argentina on Thursday became the first of the four countries to finalize
its agreement with Washington. Quirno hailed it as a milestone not only
in Argentina's alliance with the U.S., but also in Milei’s campaign to
rebuild the serial defaulter's reputation.
“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.”
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 Concessions could revive
criticism
Argentina will scrap trade barriers on more than 200 categories of
goods from the U.S., including chemicals, machinery and medical
devices, its foreign ministry said. More politically sensitive
imports, like vehicles, live cattle and dairy products, will enter
the country tariff-free under government quotas.
Those are key concessions as Argentine industries long protected by
steep tariffs fret about their ability to compete with American
manufacturers. Already domestic producers have seen their sales drop
as Milei opens the economy to an onslaught of cheap Chinese
products.
Washington, for its part, will eliminate reciprocal tariffs on 1,675
Argentine products, Argentina's Foreign Ministry said, increasing
government export revenue by over $1 billion. The exact product list
remained unclear but the White House said it included “unavailable
natural resources” and ingredients for pharmaceutical goods, after
Argentina agreed to improve its patchwork intellectual property
protections.
The U.S. also promised to review its 50% taxes on Argentine steel
and aluminum imports — a disappointment to manufacturers in
Argentina who expected the trade agreement to eliminate the
crippling tariff outright. The deal also shows the U.S. quadrupling
the current amount of Argentine beef it imports at a lower tariff
rate to 100,000 tons per year.
An influx of Argentine beef
An influx of Argentine beef could reignite criticism from cattle
ranchers and Republican lawmakers who voiced outrage last October
when Trump first floated plans to increase imports of Argentine beef
to bring prices down.
The move followed Trump administration's $20 billion lifeline and
direct purchases of Argentina's dollar-denominated bonds that
ratings agencies were classifying as “junk" and of its depreciating
currency that investors were dumping in droves.
The backlash was immediate. Trump's MAGA base questioned the need to
bail out a far-flung country that has never been a natural U.S.
trade partner: The two countries export many of the same things,
directly competing in markets of soy, corn, wheat, meat and oil.
Democratic lawmakers were furious that Trump was staking taxpayer
money on a political gift to an friend.
That criticism continues, with U.S. Sen. Elizabeth Warren, the top
Democrat on the Senate Banking Committee, appealing Thursday to
Treasury Secretary Scott Bessent to end the $20 billion bailout.
___
Associated Press writer Josh Boak in Washington contributed to this
report.
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