The government lowers tariffs to import industrial machinery and reduce costs

The national government has formalized a new tariff reduction that will benefit the importation of industrial machinery and tools, with the goal of reducing production costs and facilitating technological adoption in key sectors of the economy.

The provision, published this Tuesday in Decree 513/2025 of the Official Gazette, lowers tariffs to 12.6% for 27 categories of capital goods that until now were taxed between 20% and 35%.

Included machinery and benefited sectors

Among the products covered by the measure are metallurgical machinery such as laser cutters, folding machines, and presses; industrial equipment for the oil industry such as gas scrubbers and pipe cleaners; as well as bakery ovens, ice cream machines, elevators, industrial fans, centrifugal pumps, and machines for cutting or shearing hair.

Tariffs were also reduced for lithium-ion electric accumulators that allow energy storage, which are essential for addressing demand peaks in modern electrical systems.

Impact on imports and use of the regulation

During 2024, about 3,000 companies imported these goods, while in the first quarter of 2025 almost 2,000 did so. In total, capital goods account for 20% of Argentine imports: more than USD 9.979 billion in 2024 and another USD 4.862 billion between January and April of this year.

The main demands correspond to transportation equipment, telecommunications, and computers, and the government aims to foster a more competitive environment through access to state-of-the-art technology.

Regulatory framework and background

The reduction is based on the Customs Code and Mercosur agreements, which allow until December 2028 the application of differentiated tariffs for strategic imports. Meanwhile, the Ministry of Commerce stated that the previous government had raised tariffs "arbitrarily for revenue purposes," which resulted in "less competitive markets."

The new policy will allow companies to import at a more affordable cost, thus boosting industrial productivity and improving operating margins.

Since December 2023, the current administration has reduced tariffs on 1,081 products, including agrochemicals, tires, plastic inputs, fabrics, as well as appliances, clothing, footwear, and cell phones, with the aim of energizing the economy and encouraging competition between domestic and imported products.

Liberalization and relationship with Mercosur

The decision is also aligned with the resolution of the Mercosur Common Market Council, which expanded national lists of exceptions to the common external tariff, allowing member countries to adapt to their own economic priorities.

"The new scheme introduces flexibility without losing regional coordination", explained Foreign Minister Gerardo Werthein, who also stated that "this adaptation is essential in the face of the challenges of international trade."

An important precedent was the measure adopted last April, when the Executive simplified the importation of used capital goods, eliminating procedures that in 2024 had caused more than 1,500 files, according to Economy Minister Luis Caputo.