Trump Says U.S. Support for Argentina Depends on Milei’s Midterm Election Win

Post by : Saif Ali Khan

Washington, D.C. – U.S. President Donald Trump has said that America’s financial support for Argentina will continue only if President Javier Milei’s party wins in the country’s upcoming midterm elections. Speaking at the White House on Tuesday, Trump made it clear that his backing depends on Milei’s political success.

“I’m with this man because his philosophy is correct,” Trump said during a lunch meeting with Milei and U.S. cabinet members. “If he wins, we’re staying with him. If he doesn’t win, we’re gone.”

The strong remarks from Trump caused immediate market reactions in Argentina, with stock prices dropping by about 2%. Many investors had been encouraged by Washington’s recent decision to provide a major financial aid package to Argentina — a rare move by the U.S. government.

A Lifeline Tied to Politics

Just days before the meeting, the U.S. Treasury Department, led by Scott Bessent, had announced a new plan to help Argentina. The main part of the deal is a $20 billion currency swap between the U.S. and Argentina’s central bank. This allows Argentina to exchange its unstable peso for the more reliable U.S. dollar, aiming to bring balance to its troubled economy.

However, Bessent said that this support depends on Argentina continuing with economic policies that align with Trump’s vision. “Going back to Peronist policies would cause a rethink,” he said, referring to Argentina’s traditional populist economic style.

At the same time, Bessent clarified that the deal is not linked to Argentina ending its separate currency swap with China, which has helped Buenos Aires maintain its reserves in recent years.

The U.S. government has presented this financial assistance as a strategic move to strengthen a key ally in South America. But the announcement has drawn criticism at home, with some Americans questioning why the U.S. is sending money abroad while facing its own financial problems.

Milei’s Economic Gamble

President Javier Milei, known for his radical economic reforms, has been trying to fix Argentina’s long-standing financial crisis. Since taking office, he has fired thousands of public employees and cut government spending to reduce the country’s massive debt. He also created a Ministry of Deregulation, aimed at lowering prices and making markets more competitive.

Milei’s “chainsaw” approach to government has earned him both praise and criticism. Supporters see him as a reformer bringing discipline to a bloated system. Critics, however, say his cuts are too harsh and have worsened poverty in some areas.

His upcoming midterm elections are crucial. A poor result could weaken his power in Congress and slow down his reform plans. Trump’s comments have made these elections even more important, as U.S. support — and Argentina’s financial stability — may depend on Milei’s victory.

Market Reaction and Political Tension

Argentina’s main stock market fell nearly 2% right after Trump’s statement. Investors are worried that if Milei’s party loses, the U.S. might withdraw its support, which could further harm the struggling economy.

Political experts in Argentina believe the aid deal was timed to help Milei gain an advantage in the elections. “It benefits the government to reach the election with a stable exchange rate,” said Ignacio Labaqui, a political analyst in Buenos Aires. He explained that if the peso remains strong and the central bank’s reserves don’t fall, voters may feel more confident in Milei’s leadership.

Still, the U.S. decision to tie financial aid to political success has raised ethical and diplomatic questions. Some see it as interference in Argentina’s domestic affairs, while others view it as a sign of Trump’s transactional foreign policy style — support in exchange for loyalty.

Supporters and Critics Speak Out

At a lively event in Buenos Aires last week to launch Milei’s new book, his supporters cheered the U.S. aid. Many said it was a necessary partnership to keep Argentina afloat.

“No country grows on its own,” said Kevin Nehuen, a 24-year-old supporter from Patagonia. “We need outside help, and if it comes from the U.S., that’s good for us.” He also noted that past governments had worked with China for similar reasons, signing deals to boost the country’s dollar reserves.

But not everyone agrees. Former President Cristina Fernández de Kirchner, who remains influential in Argentina’s left-wing politics, criticized the deal. Writing from her apartment in Buenos Aires — where she is serving a corruption sentence — Kirchner warned that U.S. aid represents “food for today and hunger for tomorrow.”

Her statement reflects a wider concern among opposition groups that foreign loans could increase Argentina’s dependency on powerful nations like the U.S.

Criticism Inside the U.S.

In Washington, Trump’s move has also been controversial. Many Democratic lawmakers accused the president of focusing too much on foreign aid and international image while the U.S. government remains partly shut down.

American farmers are also unhappy. They say the deal could hurt their exports, since China has been buying more soybeans from Argentina instead of the United States this year.

Despite this criticism, Trump’s advisors argue that helping Milei could strengthen America’s influence in Latin America and serve as a counterbalance to China’s growing presence in the region.

A Test of Friendship and Power

Trump has often spoken warmly of Milei, calling him his “favorite president.” The two leaders share similar political views and have appeared together at international events. Milei was even one of the few world leaders on stage during Trump’s presidential inauguration.

For Trump, supporting Milei is not just about economics — it’s also about building a network of like-minded allies who share his nationalist and free-market ideology.

But with elections approaching, the question remains: what happens if Milei loses? Trump has made it clear that his government will not “waste time” on a leader who cannot stay in power. That means Argentina’s financial future — and its relationship with Washington — may depend on how voters choose later this month.

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