Argentina is preparing to allow up to 10,000 vehicles manufactured in the United States to enter the country without paying the standard 35% tariff, according to local media reports and government sources. The move would mark a significant shift in automotive trade policy and expand the range of models available to consumers as part of President Javier Milei’s economic liberalization agenda.
The plan, which could be announced in August, would allow US-built vehicles to enter Argentina duty-free under a fixed annual quota, bypassing the tariff applied to most automobiles imported from countries outside Mercosur, the South American trade bloc that comprises Argentina, Brazil, Paraguay and Uruguay.
Industry analysts said the impact is likely to be more noticeable in vehicle prices than in sales volumes. Gabriel Silveira, automotive editor at Argentine newspaper Clarín, told United Press International that the agreement would involve only 10,000 vehicles annually and that most qualifying models would be concentrated in higher-priced market segments.
“This agreement would involve only 10,000 vehicles annually and there are not that many cars imported from the United States. It would particularly benefit brands such as Ford and General Motors,” Silveira said.
Silveira said several luxury automakers that manufacture vehicles in the United States also would benefit, including BMW and Mercedes-Benz. He said eliminating the tariff could significantly reduce the retail price of those models.
Some companies already have begun to anticipate the agreement’s potential effects. Silveira noted that Ford is offering discounts on several US-built vehicles, including the F-150 pickup truck, Mustang sports car and Bronco sport utility vehicle.
“They are already being sold at discounted prices in anticipation of the agreement’s final implementation,” he said.
According to business news outlet iProfesional, imports exceeding the 10,000-unit limit would continue to pay the full 35% tariff. Import permits would be granted on a first-come, first-served basis, and no plans exist to automatically increase the quota in future years.
The measure could benefit US automakers such as Ford, Chevrolet and Stellantis, as well as European and Asian brands that manufacture vehicles in US plants, including Toyota, Honda, Hyundai, BMW, Mercedes-Benz and Volkswagen.
Financial newspaper Ámbito Financiero reported that the agreement will cover passenger cars, SUVs, pickup trucks and light commercial vehicles powered by internal combustion, hybrid and electric drivetrains. Models that could become available in Argentina under the program include the Toyota Tundra, Chevrolet Tahoe and Suburban SUVs, and the Mercedes-Maybach GLS.
The White House said last year that the understanding is intended to promote economic growth and expand business opportunities between the two countries.
While Argentina’s government has presented the measure as part of its broader trade liberalization strategy, some sectors of the domestic automotive industry are closely monitoring its potential effects on competition and local manufacturing.