Argentina Auto Parts Output Falls Amid Trade Reforms

Argentina's auto parts output fell 22.5 percent in early 2026. President Milei's trade reforms led to a surge in cheaper imports from both China and Brazil.

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Argentina's auto parts output fell 22.5% in early 2026 as President Javier Milei's trade liberalization fuels a surge in cheaper imports. Imports from China rose 80.9% to $1.46 billion in 2025, while domestic vehicle production dropped 19% this quarter. The industrial contraction threatens the fiscal surplus and job market stability ahead of the 2027 re-election bid.

Import Surge Squeezes Local Manufacturers

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