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U.S. President Donald Trump announced that continued American support for Argentina depends on President Javier Milei’s ruling party winning this month’s midterm elections. Speaking at the White House alongside Milei, Trump said, “I’m with this man because his philosophy is correct. If he wins, we’re staying with him. If he doesn’t win, we’re gone.”
The remarks came shortly after Washington approved a major $20 billion financial aid package to help stabilize Argentina’s struggling economy. The deal, brokered by U.S. Treasury Secretary Scott Bessent, involves a currency swap between the U.S. dollar and the Argentine peso. However, Trump’s conditional support rattled investors, sending Buenos Aires stocks down about 2%.
Bessent emphasized that the assistance is contingent on Argentina maintaining Milei’s pro-market reforms. “Going back to Peronist policies would cause a rethink,” he said, clarifying that the aid isn’t tied to Argentina’s separate swap arrangement with China.
Milei has aggressively cut public spending, eliminating tens of thousands of government jobs and launching a deregulation ministry to reduce state control and stimulate competition. The U.S. aid, unusual under an administration that has avoided foreign interventions, aims to stabilize a key regional ally amid global economic uncertainty.
Domestically, Trump faces criticism from Democrats who accuse him of prioritizing foreign bailouts while the U.S. government remains partially shut down. American farmers have also complained that China’s soybean imports from Argentina are undercutting U.S. exports.
For Milei, the bailout could strengthen his political standing ahead of critical midterms following recent electoral losses. Analysts say the funding helps maintain a stable exchange rate and protect reserves, vital for economic stability.
The partnership underscores Trump’s willingness to back Milei, a close ideological ally he calls his “favorite president.” Their alliance reflects deepening ties between Washington and Buenos Aires as both leaders seek to project strength amid domestic challenges.
