How Mobile Phone Prices Moved One Month After the Elimination of Import Tariffs?
Mobile phone prices showed minor changes following the import tariff elimination, with some reductions observed, particularly among online resellers.
In the first month following the Argentine government's elimination of an 8% import tariff on mobile phones, prices for these devices have only slightly decreased. While some retailers indeed lowered prices, this change was not consistent across the board. The reductions were most noticeable among resellers on online platforms like Mercado Libre, where competitive pressure has driven prices down by an average of 2.1% during the last week of January. This initially reflects a modest impact of the tariff removal that was implemented on January 15, 2023.
According to a study by Fundación Ecosur, a partner of the Córdoba Stock Exchange, the pattern of price reduction varied significantly depending on the specific product, with some devices seeing decreases between 1.6% and 6.5%. The organization indicated that the elimination of the import tariff is expected to result in an overall price reduction close to 7%, suggesting that the observed decrease thus far only represents a partial effect of the new policy. Furthermore, during this same period, the exchange rate experienced changes which could also influence pricing dynamics.
The implications of the tariff elimination could lead to greater price competitiveness in the mobile phone market in Argentina, but the current price adjustments indicate that not all retailers have taken advantage of this policy change. This may reflect broader market conditions, levels of inventory, and the variability in demand across different mobile phone models. As the market reacts to these changes over time, consumers may begin to see more significant reductions in mobile phone prices dependent on ongoing economic factors and retailer responses.