Argentina - United States Trade 2023 Q2: Widening Deficit

Key Market Takeaways: Argentina - United States Trade

The bilateral trade relationship between Argentina and United States contracted sharply in Q2 2023, marked by volatile demand and a widening deficit.

• $1.19B Deficit: Argentina’s imports from the U.S. ($2.55B) nearly doubled exports ($1.36B), with YoY declines across both flows.
• Resource-for-Tech Exchange: Argentina - United States trade statistics reveal heavy reliance on mineral fuels (HS 27) and specialized goods (HS 99) exports, while importing U.S. machinery (HS 84) and energy.
• Asymmetric Dependency: Argentina’s export concentration (74% in top 2 categories) contrasts with U.S. dominance in high-value tech and energy supply.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Argentina-United States Trade Trend in Q2 2023

Argentina Export Performance: Shipments to United States

• Total Volume: $1.36B in Q2 2023.
• Growth Trend & Context:
  • YoY decline persisted across all months, with June (-48.78%) seeing the sharpest drop.
  • Volatility: May’s MoM plunge (-27.93%) followed April’s 56.77% surge, indicating erratic demand or supply chain adjustments.

Argentina Import Performance: Sourcing from United States

• Total Volume: $2.55B in Q2 2023.
• Growth Trend & Context:
  • YoY contractions ranged from -24.73% (May) to -36.11% (April), reflecting sustained reduced purchases.
  • Volatility: May’s 69.65% MoM spike (to $969.30M) was the quarter’s high, but June’s growth stalled (+4.47%).

Argentina - United States Trade Balance & Market Dynamics

• Net Position: $1.19B deficit (Imports exceeded exports).
• Relationship Status: Argentina remained a net importer from the U.S., with imports nearly double exports, signaling heavy reliance on American goods amid broader trade contraction.

Argentina Import Trend from United States 2023 Q2 (Source: yTrade)**

Argentina Export Trend to United States 2023 Q2 (Source: yTrade)**

Get Historical Argentina United States Trade Records

Argentina-United States Top Trading Products in Q2 2023

Argentina Export Profile: What Does Argentina Sell to United States

• Top Commodity: HS Code 99 (43.41% share) dominates exports, followed by HS Code 27 (31.06%).
• Demand Driver: The high share of HS Code 99 suggests United States imports specialized goods or services from Argentina, while HS Code 27 (mineral fuels) indicates industrial processing needs.
• Concentration: The top two categories (HS 99 + HS 27) account for 74.47% of exports, showing extreme reliance on these sectors.

Argentina Import Profile: What Does Argentina Buy from United States

• Top Commodity: HS Code 27 (mineral fuels) leads with 43.90% of imports, followed by HS Code 84 (machinery) at 11.75%.
• Dependency Nature: Dominance of mineral fuels points to energy security reliance, while machinery imports (HS 84) reflect critical technology dependency for industrial or infrastructure needs.

Argentina - United States Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Argentina exports raw materials (HS 27) and specialized goods (HS 99) while importing energy (HS 27) and machinery (HS 84) from the United States.
• Value Chain Position: United States holds the higher value-add position, supplying advanced machinery (HS 84) and technology, while Argentina’s exports are skewed toward raw or semi-processed goods.

Import Analysis by Product: United States to Argentina (Source: yTrade)

Export Analysis by Product: Argentina to United States (Source: yTrade)

Check Detailed Argentina-United States Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Argentina’s trade deficit with the United States is likely to persist in Q3 2023, driven by continued volatility in export demand and entrenched reliance on U.S. energy and machinery imports. The sharp YoY declines in both exports (-48.78% in June) and imports (-24.73% to -36.11%) signal structural weaknesses, compounded by erratic month-to-month swings. However, May’s import spike ($969.30M) suggests pockets of demand resilience, particularly for critical inputs like mineral fuels (HS 27) and machinery (HS 84). Traders should brace for further turbulence, with Argentina’s export concentration in HS 99 and HS 27 leaving it vulnerable to U.S. demand shifts.

Strategic Moves

• Diversify Export Markets: Argentina’s overreliance on HS 99 (43.41% of exports) and HS 27 (31.06%) demands urgent diversification. Exporters must target alternative buyers for specialized goods and mineral fuels to mitigate U.S. demand volatility.
• Lock In Energy Contracts: With mineral fuels (HS 27) dominating imports (43.90%), Argentine importers should negotiate long-term supply agreements with U.S. providers to stabilize energy costs amid global price fluctuations.
• Boost High-Value Exports: To narrow the trade deficit, Argentina must prioritize upgrading export composition—shifting from raw materials to processed goods, particularly in sectors like agri-tech or renewable energy components where U.S. demand is growing.

Frequently Asked Questions

How did Argentina - United States trade perform in 2023 Q2?

Argentina's exports to the U.S. totaled $1.36B, while imports reached $2.55B, with both showing YoY declines and high volatility in monthly trends.

What are the top exports from Argentina to United States?

The top exports are HS Code 99 (specialized goods/services, 43.41%) and HS Code 27 (mineral fuels, 31.06%), accounting for 74.47% of total exports.

What does Argentina import from United States?

Argentina primarily imports HS Code 27 (mineral fuels, 43.90%) and HS Code 84 (machinery, 11.75%), reflecting energy and technology dependencies.

What is the trade balance between Argentina and United States?

Argentina recorded a $1.19B trade deficit with the U.S., as imports nearly doubled exports, signaling heavy reliance on American goods.