Buenos Aires – Argentine President Javier Milei is facing a complex political week, marked by the closure of a major manufacturing plant and accusations of political maneuvering surrounding the decision. The developments come as Milei pushes for economic reforms and seeks to strengthen ties with the United States.
The closure of Fate, a tire manufacturer, was announced on February 22, 2026, after circulating among industry leaders for months, according to reports. The move is expected to result in the loss of 920 jobs. Milei’s administration responded by stating the company’s crisis stemmed from years of labor disputes with the SUTNA union and currency restrictions, and that the government aims to foster business competitiveness.
However, Milei reportedly believes the timing of the closure was deliberate. According to sources close to the President, he suspects Javier Madanes Quintanilla, the owner of Fate and Aluar, a major aluminum producer, is attempting to pressure his administration. Milei reportedly stated, “Casualidad cero,” – meaning “zero coincidence” – when discussing the timing of the announcement.
The President has accused Madanes Quintanilla of attempting to expedite a trade agreement with the United States to secure a reduction in aluminum tariffs. A source within the presidential office explained that 70% of Aluar’s production is exported to the U.S., and the government has been seeking tariff reductions as part of the ongoing commercial negotiations. This move underscores the importance of the U.S. Market for Argentina’s aluminum industry.
The Fate closure comes on the eve of a national strike called by the CGT labor federation and a debate on Milei’s proposed labor reforms, adding to the political tension. Milei reportedly views the situation as an attempt at “extortion” and has vowed to confront Madanes Quintanilla. The case highlights the challenges Milei faces in implementing his economic agenda amid strong opposition from labor unions and business leaders.
On February 23, 2026, Milei announced further changes and measures, though details were not immediately available. The week likewise includes a planned meeting with a “Junta de Paz” in the United States, signaling a continued effort to strengthen diplomatic and economic ties with Washington.
