President Donald Trump stated that U.S. support for Argentina depends on the success of President Javier Milei’s ruling party in the upcoming midterm legislative elections. Trump emphasized that their support hinges on Milei’s party winning, as he made these comments during a meeting with Milei at the White House shortly after the U.S. agreed to provide significant financial assistance to Argentina.
The financial lifeline to Argentina includes a substantial $20-billion US currency swap with Argentina’s central bank, aiming to stabilize the country’s economy. U.S. Treasury Secretary Scott Bessent, who played a key role in this agreement, highlighted that the support package aligns with economic policies favored by the Trump administration.
Milei’s political party, La Libertad Avanza, faces challenges as it aims to improve its position in Argentina’s Congress during the midterm elections on October 26. Milei’s policies have led to a fiscal surplus and reduced inflation but have also impacted manufacturing and caused unemployment spikes in certain regions.
The decision to assist Argentina has raised eyebrows due to the Trump administration’s general stance of reducing foreign aid. Critics have pointed out that this move contrasts with the administration’s approach of cutting aid and focusing on trade relations with other countries, particularly amid the ongoing partial government shutdown in the U.S.
The support for Argentina has also drawn criticism from American farmers who have seen a shift in Chinese soybean purchases from the U.S. to Argentina. Democratic Governor Tim Walz of Minnesota described this situation as a crisis resulting from Trump’s policies, affecting the domestic agriculture industry.
Despite the strategic importance of supporting Argentina, Trump acknowledged that the U.S. was not obligated to provide this assistance. This move marks a departure from the administration’s general foreign policy approach, indicating a willingness to intervene in another country’s domestic affairs for political reasons.
Moreover, the decision to aid Argentina contrasts with previous actions taken by Trump, such as imposing tariffs on Brazilian goods following the conviction of former Brazilian President Jair Bolsonaro. The tensions between the U.S. and Brazil have led to trade disputes, adding another layer of complexity to the administration’s foreign policy agenda.