United States and Argentina reach deal to open markets on key goods

The United States on Thursday struck framework trade agreements with Argentina, Guatemala, El Salvador and Ecuador as part of a push to decrease the price of goods from Latin America, as US President Donald Trump seeks to address voter concerns over affordability.

The most significant of the deals is likely an agreement with Argentina, offering the latest boost from Washington for President Javier Milei as he attempts to open up one of the world’s most protectionist economies.

“The countries will open their markets to each other on key products,” according to a White House statement that said Argentina would provide “preferential market access for US goods exports” including certain medicines, chemicals, machinery, information technology products and medical devices.

The deals announced with Guatemala, El Salvador and Ecuador focused on reducing tariffs on key exports like bananas and coffee beans that are largely not produced in the US. Trump and other officials have said they’re pressing on efforts to reduce living costs. That new focus comes after electoral victories for US Democrats last week across a number of key contests.

The framework agreements will be completed in around two weeks and are expected to exempt specific products rather than reduce existing reciprocal tariffs, according to a senior Trump administration official who spoke on condition of anonymity. The White House expects retailers and wholesalers to pass along any benefits to US consumers, the official added.

That could help Trump as he attempts to reverse perceptions that he’s neglected addressing high costs that continue to anger US citizens. And the Argentina deal provides a boost for Milei, an ideological ally, who had set a goal this year of reaching a trade agreement with the US.

Still, by removing tariffs Trump himself imposed earlier this year, he is simply resetting import taxes back to where they where before he took office. The administration claims that lower trade barriers in Latin American countries will boost US businesses, though the nations who secured framework agreements on Thursday have much smaller trade flows with Washington than many other economies do.

The framework for the Argentina agreement comes after the Trump administration’s sweeping rescue package last month amid a market sell-off. The US rushed to provide US$20 billion in financing and directly purchased pesos in a bid to stem a currency sell-off and help Milei’s party pull off a major comeback in midterm elections

At the same time, opening up Argentina’s fragile economy will likely be met with some resistance as many domestic industries are not competitive at a global level due to high costs and tax burdens. 

For its part, the US will also remove “reciprocal tariffs on certain unavailable natural resources and non-patented articles for use in pharmaceutical applications,” according to the White House. 

Beef trade

The countries have also “committed to improved, reciprocal, bilateral market access conditions for trade in beef.” The moves to ease trade in cattle come as Trump looks to provide relief to American consumers with beef prices surging in recent years.

Yet Trump’s efforts on beef have met with some fierce criticism from ranchers – a sector that has largely backed the president. After he previously announced plans to import more beef from Argentina, the National Cattlemen’s Beef Association said any increased imports would undercut US producers. The administration has worked to placate ranchers with a programme to boost domestic beef production that includes more grazing on federal lands.

The US shipped US$2.6 million worth of beef and pork products to Argentina in 2024, according to US Department of Agriculture data. Argentina’s government had blocked imports of US poultry products due to concerns with the avian influenza, according to the International Trade Administration. The disease has continued to affect US farms since 2022 and decimated bird flocks earlier this year.

While the full size and scope of the looming agreement isn’t finalised, Argentina can’t secure a very broad agreement with the US because it is part of the South American trade bloc Mercosur, which prohibits members from negotiating large agreements outside the bloc. However, Mercosur countries earlier this year granted each member to choose up to 50 products that could be negotiated outside the bloc and be free of its common external tariffs.