Tierra del Fuego unions are carrying out a 24-hour strike to protest President Javier Milei’s decision to lower and eventually eliminate import tariffs on cellphones and other electronics. The administration’s move is expected to have a harsh impact on local production, as Argentina’s southernmost province houses the countries’ top electronics manufacturers. 

The provincial government and local companies have been protesting the Milei administration’s decision since it was announced last week. Workers from several factories decided to stop production indefinitely. Governor Gustavo Melella said he was preparing a lawsuit against the national government.

Unions heading the strike put out a statement “demanding” that the government backtrack measures that attack “the dignity of thousands of families” in the province. They added that  the goal of the stoppage was to “defend sovereignty, jobs and the national industry.”

Unions contend that tariff elimination will lead to more than half of Tierra del Fuego’s industry workers losing their jobs. They called the move a “new concession” made by Milei to the “IMF’s conditions in exchange for a loan that allows it to maintain its unsustainable economic plan.”

The government aims to fully eliminate tariffs on imported cell phones, televisions, and air conditioning units by 2026 — the three main products of Tierra del Fuego’s electronics sector. This will be carried out in two stages: the first one, which kicked off last week, is a reduction from the current 16% to 8%. The second is a complete elimination of the tariffs, scheduled for January 15, 2026.

The measures “not only hit jobs” and industry in the province, “but also put the economic and social fabric of the province at risk,” Melella wrote on his X account.

Tierra del Fuego benefits from an industrial promotion regime that started in 1972. It includes a tariff and VAT exemption on supplies’ import. The regime has been criticized for the fact that factories in the province only assemble cell phone parts, and do not add any technology to the final product. According to a report by the Fundar think tank, this is true in the case of cell phones, but not regarding AC units and TV sets.

Tariffs for imported cellphones dropped from 16 to 8% and will be completely eliminated in January. For videogame consoles, it went from 35 to 20%. In the case of internal taxes for cellphones, TVs, computer screens and air conditioners, it dropped from 19 to 9.5%. Taxes for products made in Tierra del Fuego were eliminated.