Trump threatens to pull support for Argentina if its politics don’t align with US

President Donald Trump on Tuesday (October 14, 2025) threatened to pull assistance for Argentina – led by a political kindred spirit whose philosophy aligns with that of the Republican administration – if the nation’s internal politics do not go the United States’ way in its upcoming elections.

The comments came during a meeting with Argentine President Javier Milei, whose country is set to hold midterm elections for its legislative body later this month. U.S. Presidents typically do not weigh in on the candidates in other countries’ democratic elections.

Referring to an opponent that was “extremely far-left” who encompassed a “philosophy that got Argentina into this problem in the first place”, Mr. Trump warned that the United States would not “waste our time” with largesse toward Buenos Aires if Mr. Milel does not prevail. In addition to the midterms that will be a referendum on his policies, Milel himself is up for reelection in 2027.

“If he loses, we are not going to be generous with Argentina,” Mr. Trump said from the Cabinet Room as he prepared to eat lunch with Mr. Milei.

Mr. Trump stressed that the $20 billion assistance to Argentina, which administration officials strenuously deny is a bailout, was about helping “our neighbours”. The aid, he added, is “just helping a great philosophy take over a great country”.

U.S. Treasury Secretary Scott Bessent added that the administration believed Mr. Milei’s coalition in the upcoming midterms would “do quite well and continue his reform agenda”.

As he opened his lunch with Mr. Milei, Mr. Trump noted that the Argentine president, who is an economist by trade, is “MAGA all the way”, that traditionally refers to his campaign slogan, “Make America Great Again”, but this time, it also meant “Make Argentina Great Again”.

Ahead of his White House meeting and during it, Mr. Milei lavished praise on Mr. Trump, deploying a tactic that has helped transform Mr. Milei’s cash-strapped country into one of the Trump administration’s closest allies.

Mr. Milei, speaking in Spanish, said he is “very honoured, especially in this moment when we are giving thanks for Trump’s great leadership”.

“We can follow a peaceful route and make Argentina a strong example for freedom and prosperity,” Mr. Milei said.

And that bromance has already paid off for Argentina – most recently, to the tune of a $20 billion bailout.

Experts say Milei comes to the White House with two clear objectives. One is to negotiate U.S. tariff exemptions or reductions for Argentine products.

The other is to see how the United States will implement a $20 billion currency swap line to prop up Argentina’s peso and replenish its depleted foreign currency reserves ahead of the crucial midterm elections later this month.

In a crisis, turning to Trump

The Trump administration made a highly-unusual decision to intervene in Argentina’s currency market after Mr. Milei’s party suffered a landslide loss in a local election last month.

Along with setbacks in the opposition-dominated Congress, the party’s crushing defeat created a crisis of confidence as voters in Buenos Aires province registered their frustration with rising unemployment, contracting economic activity and brewing corruption scandals.

Alarmed that this could herald the end of popular support for Mr. Milei’s free-market programme, investors dumped Argentine bonds and sold off the peso.

Argentina’s treasury began hemorrhaging precious dollar reserves at a feverish pace, trying to shore up the currency and keep its exchange rate within the trading band set as part of the country’s recent $20 billion deal with the International Monetary Fund.

But as the peso continued to slide, Mr. Milei grew desperate.

He met with Mr. Trump on September 23 while in New York City for the United Nations General Assembly. A flurry of back-slapping, hand-shaking and mutual flattery between the two quickly gave way to Bessent publicly promising Argentina a lifeline of $20 billion.