Trump’s momentous tariff schedule, legal only by reason of Congress’s dereliction of duty, came up with a multitude of negative reactions this week — with one exception: Argentina President Javier Milei’s.
Milei’s ratline disclosure was the subject of yesterday’s commentary by Paul Jacob, and Trump’s peculiar ambiguities regarding tariffs was tackled Tuesday. But the big story, now, is Argentine … free trade:
Speaking at an event at Trump’s Mar-a-Lago residence and resort in Florida, Milei delivered a brief speech as he received an award for his defence of free markets and conservative values.
Declaring he is ready to work side-by-side with the United States and Trump, Milei praised the US president and ruled out retaliatory measures.
“Argentina is going to move forward to readjust the regulations so that we meet the requirements of the reciprocal tariffs proposal developed” by Trump, Milei said, according to remarks briefed by his office.
“We have already met nine of the 16 necessary requirements , and I have instructed my country’s Foreign Ministry and Commerce Secretariat to move forward with the remaining requirements,” he said, speaking a day after Trump slapped 10-percent tariffs on Argentine goods entering the United States.
“Milei says he will change Argentina’s laws to mitigate Trump’s tariffs,” Buenos Aires Times (April 4, 2025).
Milei’s reaction to Trump’s outrageous “Liberation” tariffs is so far unique. Argentina’s “libertarian” president appears to bend over backwards to get along with the U.S.
In March, Trump said he was open to discussing the possibility of a free-trade deal with Argentina.
Milei, whom Trump calls a “great leader,” has said he is willing to pull Argentina out of Mercosur regional trade bloc if necessary.
Ibid.
The American president, in defiance of the consensus of political economy, has made much of concern with balance of trade — and Argentina, under Milei’s leadership, sported, this year, a positive balance of trade with the United States for the first time in many moons. So how does one square this circle?
If Milei succeeds, think of it as political alchemy, turning Trump’s leaden protectionism into golden free trade. We still wonder, has this been Trump’s goal all along? Based on his rhetoric, it seems a No; but if Milei’s reaction spreads, maybe then Yes.
1 reply on “Milei’s Gold”
I don’t know that I could bear to flatter Trump, but Trump truly wants to be liked; so Milei’s tactic of flattering Trump makes sense.
Contrary to what many will treat as obvious truth, the case for not imposing tariffs and other import constraints in no way hangs upon reciprocity. But Milei may find it easier to persuade the people and politicians of Argentina to accept an end to such constraints if done to avoid US constraints; and, even if quite separable, removing foreign barriers should be seen by Milei as desirable.
Trump’s terrible imposition of tariffs plausibly may trigger a global rollback of tariffs. A rollback itself would be a very fine thing. But, in this context, the terrible myth that free trade makes no sense unless it is reciprocated would be reinforced, and the protectionists would then later find a resurgence of protectionism easier to effect.
Unfortunately, the leaders of the great American political tribes do not want an economically educated public. The exact same economic principles that apply to trade across international borders apply to domestic trade. A public that truly understood why one should not be taxed and regulated would understand why the other should not be taxed and regulated. So rank-and-file Republicans can neither understand why tariffs are bad nor make a proper case for domestic laissez faire, and rank-and-file Democrats can neither understand why the domestic market should be free nor make a proper case for international free trade.