Argentina Accelerates Its Trade Liberalization: Cuts Tariffs on Key Machinery and Tools for Industry

The reduction of duties on 27 pieces of capital equipment—strategic for industrial production—aims to boost output, enhance competitiveness, and attract foreign investment.

President Javier Milei’s administration has announced a new deregulation measure that strengthens Argentina’s position as an increasingly attractive destination for industrial investment. Through Decree 513/2025, import tariffs were reduced to 12.6% on 27 machines and tools of strategic use, which previously faced rates between 20% and 35%.

The list of equipment benefiting from this reduction includes laser cutting machines, bending machines, and presses for metalworking; gas scrubbers and pipe cleaning equipment for the oil industry; industrial furnaces; elevators and industrial fans; centrifugal pumps; ice cream and sheep-shearing machines; and high-capacity lithium battery packs (up to 6 modules, with a maximum voltage of 1,500V per module), which are essential for energy storage.

This measure is grounded in the powers granted by the Argentine Customs Code and within the framework of Mercosur agreements, which allow differentiated tariffs on strategic imports until December 2028.

This initiative adds to the broader tariff reduction already implemented on 1,081 products since the beginning of the current administration. These include industrial inputs such as agrochemicals, fabrics, tires, and plastics, as well as consumer goods like home appliances, clothing, and cell phones. The overarching goal is to boost the economy, lower production costs, and foster a more competitive market, encouraging new capital inflows and productive investment.

In parallel, the administration simplified the import regime for used capital goods. This move directly addresses concerns raised in the United States Trade Representative’s (USTR) annual Foreign Trade Barriers Report, showcasing concrete progress in removing obstacles that have long hindered bilateral trade and investment.

Capital goods are critical to Argentina’s economy, accounting for 20% of total imports (USD 9.979 billion in 2024 and USD 4.862 billion between January and April 2025). Top imported items include transport equipment, telecommunications systems, and computers—all sectors with strong potential for foreign investors.

The impact of this reform is substantial: nearly 3,000 companies imported capital goods in 2024, and nearly 2,000 companies have done so in just the first quarter of 2025. This measure clearly reflects the Argentine Government’s pro-foreign investment approach, setting it apart from previous administrations. While the former government chose to raise tariffs on these products above the MERCOSUR benchmark of 12.6% for revenue purposes, Javier Milei’s goal is to make Argentina attractive through trade openness. The message is clear: incentivize new investments with market-oriented reforms, paving the way for a virtuous cycle of increased production and economic recovery.