Bad news for the government of the Argentine president, Javier Milei, has come to light this Wednesday when his American pair, Donald Trump, confirmed that he will apply 25% of tariffs to all imports of steel and aluminum from the country … South American. The novelty has been interpreted by the local press as a surprising blow to the Casa Rosada, which for weeks insists with the distant possibility of a free trade agreement with the northern country.
The phrase pronounced by Donald Trump in the last hours does not leave room for doubts. “We have deficit with Argentina,” said the US head of state when consulted by the media about the possibility of making an exception to the Milei government in the application of import tariffs, given their ideological affinity. It should be considered that the recently announced decision seriously harms the Argentine export market and its impact, according to the local press, will be about 600 million dollars annually. The measure will begin to govern as of March 12.
Although this gesture of economic protectionism adopted by the United States also affects other countries, as is the case of Mexico or Canada, the Argentine government was falsely excited with the possibility that in its case some type of exception was applied, given the strong Admiration of Milei for his American pair.
Trip to Washington
On the other hand, the news has fallen even worse in Casa Rosada since it occurs on the eve of Milei’s new trip to the United States. The president will travel there with the aim of participating again in the Conservative Action Political Conference (CPAC)which will take place next week. With the measure implemented by its American couple, it has been evidenced that the undeniable ideological affinity between both leaders does not necessarily imply a benefit for the two countries at the commercial level.
In turn, the decision made by Trump could affect not only the price of the products in their country of origin, but also to the jobs in the local industry. In fact, just hours after the announcement made by Donald Trump, the Argentine press reported that the acindar steel- one of the leaders in this sector- suspended 1,000 employees.
Free Trade Agreement
Since Donald Trump assumed the presidency of the United States for the second time, on January 20, the Casa Rosada has referred to multiple times publicly to the imminent possibility of obtaining a free trade agreement with the North American country. In several of his speeches, Milei himself insisted on the importance for his government to achieve this economic pact with the White House.
«I am proposing that each country separately can go and negotiate free trade treaties. We are working to go to a free trade agreement with the United States, and that is my priority. My priority is the Free Trade Agreement with the United States, ”said the Argentine head of state in reference to the requests he submitted at Mercosur meetings – Organism that the Argentine politician presides in a pro -time manner since last month since last month December- to negotiate bilaterally.
For this reason, the measure taken by Trump was more than surprise for the Casa Rosada, even challenging the presidential discourse on commercial benefits between the two nations. So far, the Argentine government has not spoken after the announcement of the United States.
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