Argentina Faces 10% Tariffs Amidst Milei's Optimism and Trump's Geopolitical Strategy

Argentina faces a 10% tariff on its exports to the U.S., announced by Donald Trump, despite President Javier Milei's expressed optimism regarding the relationship between the two countries. Government spokesperson Manuel Adorni suggested that Argentina's tariffs are lower compared to others due to the "marvellous relationship" with the U.S., attributing Trump's tariff policy to geopolitics rather than protectionism. Milei, who met with Trump in Mar-a-Lago, seemingly downplayed the tariff's impact, posting a link to Queen's 'Friends will be Friends' amidst global market volatility. Adorni defended Trump's tariffs, stating they target countries with protectionist policies or disproportionately high tariffs. The U.S. tariffs, while impacting most Latin American countries, impose higher rates on Nicaragua (18%) and Venezuela (15%). Imports from Canada and Mexico that comply with the USMCA trade agreement may continue to enter the U.S. tariff-free. The White House indicated that tariffs on other imports from these countries could be reduced from 25% to 12% upon meeting requirements related to immigration and drug trafficking. Argentina also awaits a decision from the International Monetary Fund (IMF) regarding a potential $20 billion funding agreement. Foreign Minister Gerardo Werthein stated this funding would be used to strengthen the Central Bank's reserves and stabilize the currency, rather than to finance the fiscal deficit.