Overview

• In Q2, 45% of manufacturing PyMEs reported feeling an import threat and 33% said they lost market share to foreign products, both multi-year highs
• INDEC data for June show imports surged 35.9% year-on-year to US$6.37 billion, driven largely by consumer goods and parts
• Industrial SME employment fell 4.7% year-on-year, marking a ninth straight quarter of job losses with textiles and footwear hardest hit
• While 74% of firms faced rising input costs, only 35% could pass them on to prices, prompting measures such as workforce cuts and greater use of imported inputs
• Industry groups are pressing for policy reforms, including changes to the puerta a puerta tax exemption and stricter import controls to protect domestic producers