China has acquired a rare export cargo of Argentine wheat as President Javier Milei temporarily eliminated export tariffs on all agricultural products to stabilize the economy ahead of Argentina's midterm elections. The move has triggered a surge in outbound grain shipments and boosted foreign exchange inflows.
- China acquired a 120,000-ton wheat shipment from Argentina in December 2025
- Argentina suspended export tariffs on all agricultural goods from December 12–31, 2025
- Expected foreign exchange inflows from the policy: $1.2 billion by January 31, 2026
- Argentine wheat exports rose 68% within one week of tariff removal
- China imports over 70% of its wheat from South America and the U.S.
- Domestic export applications increased 52% in the first two days after policy change
Argentina's government confirmed the sale of a 120,000-ton wheat shipment to a Chinese buyer, marking one of the first major grain exports since President Milei suspended export tariffs on all agricultural goods on December 12, 2025. The cargo, sourced from the Rosario region—a key agricultural hub—was dispatched within 72 hours of the policy change, highlighting the swift market response to the new trade measures. The tariff elimination, effective through January 31, 2026, aims to reverse a 40% decline in foreign exchange reserves over the past year and ease pressure on the peso. By removing taxes on exports of wheat, corn, soybeans, and sunflower seeds, the government expects to generate an estimated $1.2 billion in foreign currency inflows by month-end. This figure represents a projected 35% increase compared to average weekly export earnings prior to the policy shift. The move has already impacted global trade flows, with Argentina's wheat exports rising 68% in the week following the announcement. China, which imports over 70% of its wheat from South America and the United States, has become an increasingly active buyer amid tightening global grain markets. The recent purchase is part of a broader trend of Chinese agribusiness firms securing alternative supply sources ahead of the 2026 harvest cycle. Domestic producers welcomed the policy change, with the Argentine Grain Growers' Association reporting a 52% increase in export applications in the first two days. However, critics warn that the temporary tariff relief may distort domestic food prices and could strain the country’s fiscal position if not matched by structural reforms.