U.S. Backs Argentina’s Economic Reforms, Warns Against China’s Debt Traps

U.S. Treasury Secretary Scott Bessent met with Argentine President Javier Milei on Monday, reaffirming the Trump administration’s strong support for Argentina’s sweeping economic reforms. In an interview with Bloomberg TV, Bessent praised Milei’s efforts to dismantle currency controls and open trade, calling the reforms “historic” in pulling Argentina back from the economic brink.

The visit comes as Argentina secured a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund, along with a $12 billion World Bank loan and a $10 billion package from the Inter-American Development Bank. These moves follow significant deregulatory steps by Milei’s government.

Bessent also emphasized the U.S. goal to counter China’s influence in Latin America, warning against what he described as “rapacious” Chinese aid deals that saddle countries with debt in exchange for mining rights. He criticized these arrangements as exploitative, echoing concerns raised by data from Boston University, which shows China has lent over $120 billion to Latin American countries since 2005.

Although the U.S. is not offering a direct credit line to Argentina, Bessent acknowledged China's decision to roll over $5 billion previously drawn by Argentina as a good-faith gesture aligned with the IMF deal. He expressed confidence that Argentina’s reform-driven economy would generate enough foreign reserves to repay it.

When asked about Argentina’s chances of achieving a zero tariff rate under Trump’s new trade policy, Bessent said the outcome would depend on negotiations addressing tariffs, currency manipulation, subsidies, and non-tariff barriers. He urged Argentine officials to bring their “A game” to the table.

The Trump administration continues to strengthen ties with Latin American leaders, including recent meetings with El Salvador’s Nayib Bukele and Ecuador’s Daniel Noboa.