President Donald Trump indicated that U.S. support for Argentina is contingent on the success of President Javier Milei’s ruling party in the upcoming midterm legislative elections. During a meeting at the White House, Trump expressed his alignment with Milei’s philosophy and emphasized the importance of his party winning for continued support.
The recent financial assistance package provided by the U.S. to Argentina, including a significant currency swap deal, had initially boosted Argentine markets. However, Trump’s comments following his meeting with Milei caused a downturn in the stock market, with a two percent decline.
The details of the financial lifeline offered to Argentina have not been fully disclosed, but it is linked to the continuation of economic policies favored by the Trump administration. The support could serve as a crucial lifeline for Milei’s party as it faces economic challenges and seeks to strengthen its position ahead of the elections.
The decision to assist Argentina, amidst a backdrop of reduced foreign aid under the current administration, underscores the strong bond between Milei and Trump. Critics have raised concerns about prioritizing foreign bailouts while domestic issues persist, including a partial government shutdown.
The move has also drawn criticism from American farmers, who have seen a shift in soybean purchases from the U.S. to Argentina due to trade tensions with China. Democratic Governor Tim Walz of Minnesota blamed Trump’s policies for creating a crisis in the domestic agriculture industry.
While the White House justifies the bailout as a strategic move to support a key ally, Trump acknowledged that the U.S. is not obligated to provide such assistance. The administration’s decision to intervene in Argentina’s economic affairs contrasts with its approach in other international matters, such as the recent tariff dispute with Brazil over the conviction of former President Jair Bolsonaro.
