Let’s do a 2025 version of that column. We’ll start with this very depressing chart shared by Mark Perry of the American Enterprise Institute. As you can see, Trump truly is “Tariff Man.”
To make matters worse, Trump is being much more protectionist in his second term than he was during his first term.
Now let’s compare his performance to what has happened under Milei.
Yet even though trade liberalization was not a priority for Milei, he has moved policy in the right direction.
Consider these excerpts from a Reason article by Katarina Hall.
In a sweeping move to overhaul Argentina’s food trade policies, Javier Milei’s administration officially deregulated food imports and exports… Under the new policy, food products and packaging certified by countries with “high sanitary surveillance” can now enter Argentina without any additional registration or approval processes. These items will be automatically recognized under the Argentine Food Code, cutting down on administrative delays and costs for importers. …”With this new initiative, the national government seeks to streamline and simplify administrative procedures in the exchange of goods and products, understanding that economic activities are the true engine of the country’s development and that it is also essential to protect the health of the entire Argentine population,” the decree says.
This is trade liberalization and mutual recognition. A win-win for consumers and the economy.
Now let’s review these passages from a report by the Economist Intelligence Unit.
The government of the president, Javier Milei, has passed measures to ease the import of basic consumer goods as it seeks to increase competition and decrease prices. It has also reduced tariffs for a number of inputs of the agricultural and automotive sectors, in order to increase competitiveness by reducing costs. …Decreasing tariff and non-tariff barriers is part of the Milei administration’s commitment to pursue free‑market policies, and we expect that it will continue to announce measures to ease imports, in order to boost competitiveness and bring down prices. …powerful vested interests…have traditionally opposed trade liberalisation efforts. …The government has announced other trade measures that seek to increase domestic producers’ competitiveness. For the automotive sector, the government will decrease tariffs on certain capital and intermediate goods, such as moulds and plastic injections, with the average tariff falling from 29.5% to 12.6%. The agricultural sector will also benefit from lower tariffs. Fertilisers will be exempt from tariffs, and herbicide tariffs will fall from an average of 31% to 12.6%. The reduced cost of inputs is expected to support wheat sowing for the 2024/25 harvest, beginning in June. Tariffs on plastic intermediate goods will also fall from 12.6% to 6%.
Last but not least, here are some excerpts from a column by Professor Ben Powell for Real Clear Politics.
President Trump’s counterproductive trade wars, and the erratic nature in which he’s pursuing them, already have destabilized financial markets and pose a serious threat to the administration’s supposed economic-growth agenda. Markets would improve if Trump focused on deregulation, cutting government spending, and lowering taxes. That’s the successful formula that Milei, who assumed the Argentine presidency in December 2023, has pursued. …Milei understands the benefits of international trade and hasn’t let protectionist interest groups undermine his policies. Milei outlined the need for free trade in a recent speech, saying, “We need to give back to Argentines the freedom to trade with whomever they wish, so that goods and services can enter the local market and everyone can freely buy better quality products at a better price.” Protectionist policies, he warned, are “nothing more than a scam between politicians and rent-seeking businessmen.” Let’s hope that President Trump learns from President Milei that protectionist policies and a growing economy are at odds with each other.
For what it’s worth, I think Milei should be more aggressive on trade, though I confess I don’t know whether he has the same flexibility that U.S. law gives to Trump. Or perhaps he is constrained by the Mercosur trade pact.
Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.
