Former President Donald Trump has voiced his support for Argentinian President Javier Milei, signaling a potential path forward for U.S.-Argentina relations. Trump made it clear that continued American financial support hinges on Milei and his administration staying in power.
During a meeting at the White House, Trump praised Milei’s leadership, emphasizing the importance of his political success for future U.S. assistance. “If he wins, we’re staying with him. And if he doesn’t win, we’re gone,” Trump stated, referencing Argentina’s upcoming elections.
The Trump administration recently finalized a $20 billion financial package for Argentina, designed to offer stability amidst a currency crisis. This aid, structured as a currency swap line and direct purchases of Argentine pesos, aims to provide Buenos Aires with essential financial resources as it battles high inflation and low foreign reserves.
Treasury Secretary Scott Bessent described the plan as a “financial lifeline” for an ally committed to free-market principles. He stressed that U.S. support is conditional on Argentina maintaining “sound fiscal and market-oriented policies,” under Milei’s continued leadership.
Milei, who assumed office in December 2023, faces a crucial test in the upcoming legislative midterm elections. His party, La Libertad Avanza, is striving to gain a congressional majority to push through a broad agenda of deregulation and fiscal responsibility.
Experts suggest that the election outcome will significantly impact Milei’s ability to implement his economic reforms. A supportive Congress would enable him to move forward, while a divided Congress could create obstacles.
A representative for Milei acknowledged that Trump’s remarks reflect widespread approval of Argentina’s shift toward greater liberty, including Milei’s potential re-election bid in 2027.
Trump’s statements have generated varied reactions both in Argentina and the United States. Opposition leaders in Argentina have criticized what they perceive as interference in their country’s internal affairs. Similarly, some lawmakers in Washington, D.C., have expressed reservations about the conditional nature of the aid.
However, supporters of the agreement argue that it strengthens U.S. influence in South America, especially as China increases its involvement through infrastructure projects and trade.
“Argentina is a beacon in the Western Hemisphere,” Bessent stated, underscoring the desire to see the nation thrive.
Argentina’s midterms are a key moment for Milei’s reform efforts and for a strategy of linking economic aid to political alignment. A strong showing by Milei’s party could lead to further financial cooperation in the coming years. Conversely, a shift in congressional control to opposition forces could jeopardize the aid package and the deepening U.S.-Argentina relationship.
The situation highlights a broader debate about the role of the United States in supporting countries that embrace free-market principles and align with American interests. The conditional nature of the aid reflects a growing emphasis on accountability and ensuring that taxpayer dollars are used effectively to promote shared values. It remains to be seen how this approach will play out in Argentina and whether it will serve as a model for future U.S. foreign policy. The future of Argentina, and the success of its partnership with the United States, hangs in the balance.
