The Argentine government will completely eliminate tariffs on imported cell phones by 2026, presidential spokesman Manuel Adorni said in a Tuesday press conference. It will be completed in two stages — the first, a reduction from the current 16% to 8% slated for later this week, and the second, a total elimination of the tariffs, which will happen by January 15, 2026.

The first part of the reduction process is expected to take effect “between Thursday and Friday,” according to Adorni.

“Today, in Argentina, a cell phone with 5G technology, that is, a high-end cell phone, costs twice as much as in Brazil and the United States,” Adorni said in his conference. He added that Argentines flew to other countries to buy cell phones, a situation he called “ridiculous.” The spokesman said that a cell phone with a US$2,566 price tag in Argentina “costs US$1,290 in Madrid, US$1,147 in Santiago, US$1,143 in London, [and] US$1,011 in New York.”

President Javier Milei’s administration is following an opposite path to that of his main ally, U.S. President Donald Trump, who last month started a global trade war by imposing tariffs on imports all over the world. 

“With the total of this tax reduction, it is estimated that the prices of imported electronic products will drop by at least 30%, which will put Argentina on a par with the rest of the neighboring countries,” Adorni said. 

He added that the Milei administration would also eliminate products manufactured in Tierra del Fuego, Argentina’s southernmost province. The province has an industrial promotion regime, and most appliances and electronics in the country are made there.

“Additionally, internal taxes on imported cell phones, televisions, and air conditioners will also be reduced from 19% to 9.5%, and for those produced in Tierra del Fuego, from 9.5% to 0%,” he said.

When asked about the impact the measure could have on electronics manufacturers in Tierra del Fuego, Adorni said “there is nothing that we do that is against the private sector.” 

“The price reduction will mean that when you save 30% on a cell phone, you can basically do two things with those savings: consume it in something else, therefore, you will reactivate another sector,” he said, adding that the state steals money by collecting taxes.