07/02/2026
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07/02/2026
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Javier Milei, President of Argentina, listens to speeches after the signing of a Board of Peace charter during the Annual Meeting of the World Economic Forum in Davos, Switzerland on Jan 22. (AP)
BUENOS AIRES, Argentina, Feb 7, (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 US 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 US and championing Trump’s increasingly aggressive interventions in the Western Hemisphere. Milei has traveled to the US 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.
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.”
