In a recent survey conducted by AtlasIntel for Bloomberg News, findings revealed that there is a notable split among Argentineans regarding President Javier Milei’s proposal to negotiate a free trade agreement with the United States. While about 60% of respondents support the idea as a positive step forward, 35% express concerns and opposition towards the notion.
President Milei’s commitment to pursuing a trade deal with the US, even if it means potentially exiting the Mercosur trade bloc, marks a significant shift for Argentina, a country that has historically maintained protectionist economic policies. However, doubts linger among the Argentine public about the ability of their industries to compete with American counterparts, with only 46% expressing confidence in their domestic companies' capabilities.
Moreover, there is growing apprehension surrounding the potential impact of President Donald Trump’s looming tariffs on Argentina's economy. Nearly 60% of respondents fear the economic repercussions of these tariffs, especially as Trump has announced plans for global tariffs on steel and aluminum, which would directly affect major Argentine firms like Tenaris SA and Aluar Aluminio Argentino SAIC.
With Argentina already facing high tariffs against US products, the prospect of reciprocal tariffs raises concerns about the potential negative implications for the country, adding to the uncertainty surrounding Trump’s trade policies in his second term. This uncertainty underscores the complex dynamics at play as Argentina navigates the dual challenges of pursuing a US trade deal while grappling with the specter of Trump’s protectionist trade measures.