President Donald Trump stated that the future of U.S. support for Argentina is contingent on the success of President Javier Milei’s ruling party in the upcoming midterm legislative elections. Trump emphasized that if Milei’s party does not emerge victorious, the U.S. will not continue its support. The announcement came during a meeting between Trump and Milei at the White House, shortly after the U.S. pledged significant financial assistance to Argentina.
The financial lifeline provided by the U.S. includes a substantial $20 billion currency swap with Argentina’s central bank, aimed at stabilizing the country’s economy. However, Trump’s remarks regarding the outcome of the elections had a negative impact on Argentine markets, leading to a two percent decline in the main stock market.
During the meeting, U.S. Treasury Secretary Scott Bessent highlighted that the support package is based on the continuation of economic policies supported by the Trump administration. The specifics of the agreement have not been fully disclosed, but it is seen as a crucial aid for Milei as he faces economic challenges and attempts to strengthen his party’s position amidst a looming crisis.
Milei’s party, La Libertad Avanza, is striving to enhance its representation in Argentina’s Congress in the upcoming elections on October 26. The move to assist Argentina stands out as a departure from the Trump administration’s usual stance on foreign interventions, which has seen a reduction in foreign aid and a focus on other global issues.
Critics have raised concerns about the prioritization of foreign bailouts under Trump’s leadership, particularly as domestic issues persist, such as the ongoing partial government shutdown. American farmers have also expressed discontent over the shift in soybean purchases from the U.S. to Argentina, partly due to the trade tensions initiated by the Trump administration with China.
Democratic Governor Tim Walz of Minnesota criticized Trump’s policies, attributing the farming crisis in part to the administration’s actions. Despite the criticism, Trump defended his approach and emphasized that the U.S. assistance to Argentina is a strategic move to support a key ally in the region, although he acknowledged that it is not a necessity for the country.
The White House’s decision to intervene in Argentina’s economic affairs underscores the administration’s willingness to back political allies, even at the risk of facing domestic backlash. Trump’s actions have been subject to scrutiny, with concerns raised about his handling of international relationships and the potential implications for U.S. interests.