Argentines want US trade deal despite competition, tariff fears

Argentines support President Javier Milei’s quest to negotiate a free trade agreement with the US, but are split over competing with American firms and are very worried about Donald Trump’s looming tariffs.

About 60 percent of Argentines see a US trade deal as a “a good idea” versus 35 percent opposed to the notion, according to LatAm Pulse, a public opinion survey conducted by AtlasIntel for Bloomberg News in late January. 

Milei pledged in December to seek out a trade agreement with Trump, and said in an interview with Bloomberg News last month that he’d be willing to leave South American trade bloc Mercosur if necessary to get a deal. It would mark a major reversal for Argentina, which for decades was one of the world’s most protectionist economies and is now facing the prospect of Trump’s tariffs. 

Argentines are less confident about the benefits of a future US trade deal and are deeply concerned about what Trump’s presidency means for the South American nation in the near term. 

Only 46 percent of respondents think Argentina’s industries can compete with their US counterparts, while 41 percent don’t see domestic companies winning many business battles over US corporate titans, the survey found. 

In the near term, more Argentines see Trump’s presidency hurting their country rather than helping it and nearly 60 percent fear the economic impact of potential tariffs. Those views reinforce concerns held across Latin America that the US president’s second-term trade policies could be more painful.

Trump said Sunday he would implement 25 percent global tariffs on steel and aluminium, which would affect two major Argentina firms: Tenaris SA and Aluar Aluminio Argentino SAIC. Reciprocal tariffs could also hit Argentina hard because it has some of the highest average tariffs against US products in the world.