The Government eliminates tariffs for cell phones: what will be the impact on prices

The national government announced a series of fiscal measures that deeply modify the price structure in the electronics market. Among the most relevant changes is  the gradual elimination of the 16% tariff for the importation of cell phones, a reduction in internal taxes, and the implementation of logistical improvements, such as the courier between Tierra del Fuego and the continent.

According to the authorities,  the central objective of these decisions is "to stimulate competition" and align domestic prices with international values, in a context where Argentina shows significant overpricing in technological goods.

Cell phones: gradual elimination of the tariff

The most notable point is the phased reduction of the tariff on imported cell phones:

• From the publication of the decree, the tariff will drop from 16% to 8%.
• Starting January 15, 2026, it will be completely eliminated and will remain at 0%.

Manuel Adorni, presidential spokesperson, confirmed that the decree will be published this week and emphasized that the measure aims to reduce retail prices.

Internal taxes: reduction for nationals and foreigners

A significant reduction in internal taxes will also be applied:

• For imported cell phones, televisions, and air conditioners, it will drop from 19% to 9.5%.
• For the same products manufactured in Tierra del Fuego, the tax will be reduced from 9.5% to 0%.

The Executive seeks to maintain incentives for the Fuegian regime, while keeping in mind the need to level conditions for the rest of the market.

Video game consoles and optimized logistics

In the case of consoles like PlayStation or Xbox, the tariff will drop from 35% to 20%, in line with the Mercosur Common External Tariff. Additionally, courier service from Tierra del Fuego will be enabled, which promises to streamline distribution and reduce logistical costs.

Price comparison: a difficult gap to sustain

According to official data, a high-end 5G cell phone costs USD 2,566 in Argentina, compared to USD 1,011 in the U.S., USD 1,147 in Chile, USD 1,290 in Spain, and USD 1,143 in the United Kingdom. In 43-inch LED televisions, the local price (USD 637) doubles that of countries like Chile or Mexico. Meanwhile, in hot/cold air conditioners, the values are more than double those in Brazil or Mexico.

Projections of short and long-term impact

The consulting firm Abeceb estimates that in 2025 cell phone prices could drop between 6% and 8%, while in air conditioners and televisions the reduction could reach 12%. By 2026, with the tariff at 0% and greater competition, the accumulated decrease would reach up to 20%.

The case of the iPhone in Argentina

The company MacStation projected that an iPhone 16 Pro Max with 256 GB, currently valued at $2,125,244, would cost $1,848,962 with the new scheme (8% tariff) and $1,727,823 in January 2026 (0% tariff). This would imply a 19% decrease.

The company highlighted that the measure will help reduce the "gray market" and promote sales with formal financing, such as 6 to 12 installment plans.

Official estimate: up to 30% drop in prices

The Ministry of Commerce indicated that the total impact of the measures could generate a drop of up to 30% in imported electronic products. A decrease is also expected in goods manufactured in Tierra del Fuego thanks to the reduction of internal taxes.

The government believes that this policy can help combat smuggling and cell phone theft by facilitating formal access to state-of-the-art technology.