Trump says he may up Argentina's bailout - but it depends on who wins upcoming elections

US PRESIDENT DONALD Trump has said that further financial aid for Argentina depends on the result of upcoming elections which will dictate whether his visiting counterpart Javier Milei can pass tough reforms.

Trump is hosting the right-wing Milei at the White House today, days after his administration promised $20 billion to prop up the Argentine peso.

Trump’s administration has already promised $20 billion to prop up Argentina’s struggling economy but his backing has failed to calm the markets – or help Milei’s polling ahead of crunch elections.

The Republican leader told Milei during the meeting today that he believes Milei’s polling will “be better” after the US intervention.

Trump went on: “And you know, our approvals are somewhat subject to who wins the election, because if a socialist… wins you feel a lot differently about making an investment.”

Earlier, the US president hailed his embattled counterpart as a “great leader”, as the firebrand sought a show of economic and political support from a powerful friend.

“We love them. They have a great leader,” Trump said when a reporter asked for his message to the people of Argentina as he shook hands with Milei outside the West Wing.

Both then gave the thumbs-up sign for the cameras before heading inside for lunch.

With Argentina struggling to stave off yet another financial crisis and Milei’s disapproval ratings rising, the chainsaw-wielding libertarian has come to right-wing ally Trump for help.

Trump has repeatedly voiced political support for Milei, while backing it up with a promise of huge economic aid.

But Trump himself faces questions about how a bailout for Buenos Aires tallies with the “America First” policy that has seen Washington slash foreign aid for most countries.

Advertisement

Mass layoffs in civil service

Meanwhile the markets remain spooked by Argentina, and Milei’s situation ahead of the 26 October elections has not improved.

Milei has drastically cut the civil service in Argentina, slashing tens of thousands of jobs. While it has reduced state expenditure, it has also had knock-on impacts on employment and consumer spending in the wider economy.

The results of the elections will dictate whether Milei can pass tough cost-cutting reforms or will face a legislative brick wall for the next two years of his term.

About half the seats in the Chamber of Deputies are up for grabs, and a third of those in the Senate.

In recent weeks, highly indebted Argentina has had to spend more than a billion US dollars to defend the peso, a strategy most economists believe is unsustainable.

That prompted Milei’s allies in Washington to step in with a financial bailout.

Why is Trump backing Milei?

The US bailout has marked a rare instance of direct US intervention in Latin American currency markets, underscoring Washington’s strategic interest in Milei’s success.

In Argentina, there has been fevered speculation about what Trump might want from Milei in return for his support.

“They know we are a true ally,” Milei said in an interview yesterday, referring to Argentina’s alignment with US and Israeli interests.

Before Milei took power, Argentina – a major lithium producer – had been deepening ties with China.

The Argentine president’s office said the leaders would discuss “multiple topics” during their meeting this week.

With reporting by – © AFP2025

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More Support The Journal