Milei’s Argentina Cuts Export Taxes, Frees Industry from Heavy Burden

Argentina’s government, led by President Javier Milei, has eliminated export duties on 88% of industrial products, according to an official announcement by Economy Minister Luis Caputo on April 30, 2025.

The move, formalized in a forthcoming decree, removes taxes of 3% to 4.5% on 4,411 products. Nearly 40% of the country’s exporters, or 3,580 companies, will immediately benefit. Last year, these products accounted for $3.8 billion in export value.

This policy responds to long-standing demands from Argentina’s industrial sector, including the influential Unión Industrial Argentina. Business leaders have argued that export duties made their goods less competitive abroad and discouraged exports.

The government’s decision excludes basic inputs like iron, steel, aluminum, petrochemicals, and vehicles, which will continue to pay export taxes. Officials say fiscal discipline made this change possible.

The government cut public spending by 4.7% of GDP and reduced annual inflation from 211% in 2023 to 118% in 2024. Monthly inflation now stands between 2% and 4%.

President Milei’s administration has focused on freeing Argentina’s economy from state intervention. Since taking office in December 2023, Milei has frozen the money supply, stopped the central bank from printing new pesos, and eased currency controls.

He also introduced a more flexible exchange rate, letting the dollar trade between 1,000 and 1,400 pesos. These steps aim to stabilize the peso and restore business confidence.

Argentina’s Push to Diversify Trade and Boost Competitiveness

The removal of export duties covers a broad range of goods. These include farm machinery, optics, glass, car parts, watches, pharmaceutical products, cables, insecticides, cosmetics, pumps, plastics, and metals.

The government hopes this will boost value-added exports and help diversify Argentina’s export base, which has long depended on raw agricultural goods. This reform builds on earlier measures.

In January 2025, the government eliminated export taxes for regional agro-industrial products such as cotton, paper, food, and beverages. It also reduced duties on major agricultural exports.

Officials say these changes aim to make Argentine producers more competitive and encourage investment. However, the reforms come with challenges. The government’s tight monetary policy and spending cuts have caused economic pain for many Argentines.