Trump Says US Will Not Back Argentina Without Milei’s Victory
Trump says US will not continue aiding Argentina unless President Javier Milei wins his upcoming midterm elections, a statement that has stirred both outrage and global headlines.
During a high-profile meeting at the White House, U.S. President Donald Trump openly admitted that America’s new $20 billion (£15 billion) lifeline to Argentina is directly tied to political loyalty. The funds were intended to help stabilize Argentina’s rapidly collapsing peso and calm its ongoing currency crisis, but Trump made it clear: U.S. support depends on Milei’s success at the polls.
“If Milei loses, we’re not going to waste our time,” Trump declared.
His blunt remark, made in front of reporters and officials, underscored how the future of U.S. assistance may hinge on Argentina’s political outcomes.
The $20 Billion Lifeline-Political Move or Economic Rescue?
The financial package was initially described as a “currency swap” designed to strengthen Argentina’s reserves and prevent another major devaluation. But Trump says US will not proceed with this generosity if Milei’s La Libertad Avanza party fails to gain ground in the October 26 midterm elections.
Trump justified his stance by saying that supporting a like-minded ally like Milei, known for his free-market, libertarian reforms, and sharp austerity policies, serves American interests.
“Victory for Milei is very important,” Trump told reporters. “If a socialist wins, we will feel a lot differently about helping Argentina.”
This statement drew sharp criticism from economists and diplomats, many arguing that such comments blur the line between foreign aid and electoral interference.
Milei’s Response: Blame and Gratitude
President Milei, who took office in December 2023, responded with both gratitude and deflection.
He thanked Trump for what he called a “lifeline of confidence” while blaming Argentina’s ongoing liquidity crisis on “political attacks” from his opponents.
“This liquidity problem comes from the sabotage we have suffered,” Milei said.
Milei has built his reputation as a “Thatcherite reformer,” advocating for extreme budget cuts, privatization, and deregulation to restore Argentina’s economy. But his aggressive approach has divided the nation — earning praise from business leaders while fueling anger among workers and unions.
Economic Reality: A Nation Under Pressure
Despite Trump’s endorsement, Argentina’s markets reacted negatively. Following the joint press conference, Argentine stocks dropped and the peso weakened further.
Analysts noted that investors appeared skeptical about Trump’s politically charged comments actually improving Argentina’s economic outlook.
Economist Maria Suarez, speaking to Bloomberg, said, “Linking U.S. funding to election results introduces uncertainty. It’s not about economics anymore; it’s about politics.”
For years, the Argentine peso has lost value due to inflation, debt, and dwindling reserves. Milei’s administration has been burning through cash to keep the currency artificially stable, fearing that another devaluation would send prices skyrocketing.
Trump Says US Will Not-The Global Implications
This isn’t the first time Trump has tied financial support to political outcomes, but this open admission is rare and risky.
By stating that “our approvals are subject to who wins the election,” he positioned U.S. foreign aid as a conditional reward, which many experts say undermines American credibility abroad.
A U.S. State Department insider told The Guardian that while Milei’s reforms align with Washington’s interests, “explicitly politicizing aid” may damage future negotiations with Latin American allies.
Still, Trump’s defenders argue that his “America First” policy means ensuring taxpayer dollars go to governments aligned with U.S. ideals.
The Stakes for Milei’s Government
If Milei’s Freedom Advances party loses ground in the midterms, his ability to push economic reforms through Congress could vanish. He already faces an opposition-controlled legislature that has overturned several of his vetoes.
Recent corruption scandals have also hurt his approval ratings, leaving even his strongest supporters uneasy.
Should Milei lose, Argentina risks losing not only U.S. support but also confidence from international investors and IMF partners.
And with $20 billion in debt due next year, Argentina cannot afford to alienate its largest financial backer.
Public Opinion: Mixed Emotions in Buenos Aires
In the streets of Buenos Aires, reactions are divided.
Supporters view Trump’s statement as proof of a strong partnership between two reform-minded leaders. “He believes in Milei’s vision for Argentina,” said Lucia Torres, a small-business owner.
Critics, however, see it as coercive. “It’s foreign interference, plain and simple,” argued Pablo Garcia, a university professor. “No other country should dictate how Argentines vote.”
Polling data suggests that while Milei retains a loyal base, many citizens are growing weary of budget cuts that have slashed pensions, education, healthcare, and transport subsidies.
Can US Support Save Argentina’s Economy?
Economically, the U.S. bailout might delay a full-blown currency collapse, but experts warn it’s only a temporary fix.
The funds were designed to stabilize the peso by increasing reserves, yet without structural reforms and political stability, long-term recovery remains uncertain.
Trump says US will not continue to assist Argentina if the country chooses a “socialist alternative,” which could further shake investor confidence.
A Gamble With Global Consequences
This episode highlights how deeply intertwined politics and economics have become on the global stage. Trump’s comments were not merely diplomatic off-hand remarks, they represent a geopolitical gamble.
Should Argentina’s economy collapse after the elections, the repercussions will ripple beyond South America, affecting trade relationships and regional stability.
Milei’s reforms, while controversial, have so far managed to lower inflation and cut deficits, but at significant social cost. Whether U.S. support remains or vanishes could determine if Argentina’s fragile recovery holds, or unravels completely.
