Oct. 15, 2025:
WASHINGTON (AP) — President Donald Trump on Tuesday (Oct. 14, 2025) threatened to pull assistance for Argentina — led by a political kindred spirit whose philosophy is similar to that of the Republican administration — if the nation’s internal politics don’t align with his interests in 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 who was “extremely far-left” and encompassed a “philosophy that got Argentina into this problem in the first place,” Trump warned that the United States wouldn’t “waste our time” with largesse toward Buenos Aires if Milei does not prevail. In addition to the midterms that will be a referendum on his policies, Milei himself is up for reelection in 2027.
“We’re not going to let somebody get into office and squander the taxpayer money from this country. I’m not gonna let it happen,” Trump said from the Cabinet Room as he prepared to eat lunch with Milei. “If he loses, we are not going to be generous with Argentina.”
Even so, Trump insisted that the $20 billion assistance to Argentina, which administration officials strenuously deny is a bailout, was about helping “our neighbors” rather than any ties to the upcoming midterms.
“It’s just helping a great philosophy take over a great country,” the U.S. president said. “Argentina is one of the most beautiful countries that I’ve ever seen, and we want to see it succeed. It’s very simple.”
U.S. Treasury Secretary Scott Bessent added that the administration believed Milei’s coalition in the upcoming midterms would “do quite well and continue his reform agenda.”
As he opened his lunch with Milei, 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.”
Trump’s meeting with Milei was already making waves back in Argentina, with Cristina Fernandez de Kirchner, leader of the left-leaning Peronist opposition and a two-term former president, writing on social media: “Trump to Milei: ´Our agreements are subject to whoever wins election´. Argentines … you know what to do!”
The former president is serving a six-year sentence under house arrest since June for corruption, but she remains the most influential leader of Peronism, an ideologically flexible, labor rights-focused populist movement, which emerged in the 1940s and dominated politics for decades.
Ahead of his White House meeting and during it Milei lavished praise on Trump, deploying a tactic that has helped transform Milei’s cash-strapped country into one of the Trump administration’s closest allies.
Milei, speaking in Spanish, said he is “very honored, 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,” Milei said.
That bromance has already paid off for Argentina — most recently, to the tune of a $20 billion bailout.
In a crisis, turning to Trump
The Trump administration made a highly unusual decision to intervene in Argentina’s currency market after 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 Milei’s free-market program, investors dumped Argentine bonds and sold off the peso.
Argentina’s Treasury began hemorrhaging precious dollar reserves at a feverish pace, trying 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, Milei grew desperate.
He met with Trump on Sept. 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.
Markets cheered, and investors breathed a sigh of relief.
Timing is everything
In the days that followed, Argentine Economy Minister Luis Caputo spent hours in meetings in Washington trying to seal the deal.
Reassurance came last Thursday, when Bessent announced that the U.S. would allow Argentina to exchange up to $20 billion worth of pesos for an equal sum in dollars. Saying that the success of Milei’s program was “of systemic importance,” Bessent added that the U.S. Treasury directly purchased an unspecified amount of pesos.
For the Trump administration, the timing was awkward as it struggles to manage the optics of bailing out a nine-time serial defaulter in the middle of a U.S. government shutdown that has led to mass layoffs. Democratic lawmakers and other critics have slammed it as an example of Trump rewarding loyalists at the expense of American taxpayers.
Later Thursday, Sen. Elizabeth Warren of Massachusetts — who was singled out during the White House meeting by both Bessent and Trump — tried to advance a bill that would block the $20 billion in U.S. assistance, but the gambit failed in the Republican-controlled Senate.
Saying Trump was only aiding Argentina to help Milei, Warren said, “That’s Argentina first, not America first.”
But for Argentina, the U.S. help came in the nick of time.
Aware of how a weak currency could threaten his flagship achievement of taming inflation and hurt his popularity, Milei hopes to stave off what many economists see as an inescapable currency devaluation until after the Oct. 26 midterm elections. A devaluation of the peso would likely fuel a resurgence in inflation.
Talks also touch on artificial intelligence
Another topic that had been on the agenda was the Stargate project, which would expand a network of massive artificial intelligence centers to Latin America, according to a person with knowledge of the plans who was granted anonymity to speak about private discussions.
Argentina could be home to Latin America’s first Stargate, which is a joint initiative from OpenAI, Oracle and SoftBank that will build a network of big data centers that would power OpenAI’s artificial intelligence technology. It’s an initiative that’s been championed by Trump himself.
Milei also joined a ceremony at the White House honoring Charlie Kirk, the prominent right-wing political activist who was fatally shot last month. Milei often crossed paths with Kirk on the speaking circuit of the ascendant global right.
There has been no word on how Argentina, the IMF’s largest debtor, will end up paying the U.S. back for this $20 billion, which comes on top of IMF’s own loan for the same amount in April. And that one came on top of an earlier IMF loan for $40 billion.
Despite all the help, Milei’s government already missed the IMF’s early targets for rebuilding currency reserves.
“The U.S. should be concerned that Argentina has had to return for $20 billion so quickly after getting $14 billion upfront from the IMF,” said Brad Setser, a former Treasury official now at the Council on Foreign Relations.
Oct. 3, 2025:
Senators Amy Klobuchar (D-MN), Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry, and Elizabeth Warren (D-MA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, led 12 of their colleagues in calling on President Trump to immediately halt his plan to send a $20 billion bailout to Argentina, which recently suspended soybean export taxes, undercutting American farmers in the international market.
“We write with deep concern regarding your plan to send a $20 billion bailout, funded by American taxpayers, to Argentina just days after the country took steps to undermine American farmers,” wrote the Senators. “Last week, Argentina announced its plan to suspend export taxes on soybeans, effectively sidelining American soybean farmers in the international market.”
“Despite Argentina’s decision, you are still reportedly moving forward with the bailout for the country,” the Senators continued. “American soybean farmers – who are already reeling from your sweeping tariffs – deserve better.”
Along with Klobuchar and Warren, Leader Chuck Schumer (D-NY) and Senators Tammy Baldwin (D-WI), Cory Booker (D-NJ), Chris Coons (D-DE), Tammy Duckworth (D-IL), Dick Durbin (D-IL), Tim Kaine (D-VA), Jack Reed (D-RI), Bernie Sanders (I-VT), Elissa Slotkin (D-MI), Tina Smith (D-MN), and Chris Van Hollen (D-MD) signed the letter.
The full letter is available here and below.
Dear President Trump:
We write with deep concern regarding your plan to send a $20 billion bailout, funded by American taxpayers, to Argentina just days after the country took steps to undermine American farmers. Last week, Argentina announced its plan to suspend export taxes on soybeans, effectively sidelining American soybean farmers in the international market. Despite Argentina’s decision, you are still reportedly moving forward with the bailout for the country. American soybean farmers – who are already reeling from your sweeping tariffs – deserve better.
American farmers are confronting unprecedented challenges under your sweeping and uncertain trade policies. Across-the-board tariffs are increasing the cost of critical inputs farmers need to produce a crop, like fertilizer and equipment, at the same time retaliatory tariffs are making U.S. agricultural products less competitive and putting key export markets at risk. Nearly 20 percent of U.S. farm production is typically sold to customers abroad. With those markets in jeopardy, farmers and businesses across the agricultural supply chain are now facing falling commodity prices and shrinking profit margins, while farm debt, bankruptcy rates, and distressed operations are rising across the country. Soybean producers have been particularly affected, as China – historically our largest agricultural export market – has purchased no U.S. soybeans since May and bought 51 percent less through July compared to the same period last year.
Despite the crisis facing our farmers, your attention appears to be elsewhere: last Monday, September 22, your Administration announced it “stands ready to do what is needed” to bail out Argentina amidst the country’s economic turmoil. Argentina’s President, Javier Milei, is notably one of your close personal friends and ideological allies and faces a crucial midterm election on October 26.
Immediately following your Administration’s announcement regarding potential U.S. financial support for Argentina, Argentina suspended export taxes on soybeans, corn, wheat, and other agricultural commodities. Argentina’s policy change had immediate consequences for American farmers. Argentine agricultural products are now significantly more competitive on global markets, and Chinese buyers have reportedly purchased up to 40 cargoes of soybeans from Argentina in just one week. Now, even after Argentina suspended its export duties, your Administration is moving full steam ahead with its plans to offer financial assistance to the tune of $20 billion – rewarding a country that has implemented policies that directly disadvantage American farmers in favor of our competitors.
It is unclear why you are choosing to use taxpayer dollars to bolster the reelection campaign of a foreign president while they take steps to undermine U.S. farmers. As the American Soybean Association put it last week: “U.S. soybean prices are falling; harvest is underway; and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina.”
Rather than reversing course on tariffs or abandoning your plans to bail out Argentina, you are reportedly planning to provide American farmers with an aid package, nominally paid for with tariff revenues. Farmers want fair trade and steady markets, not tariff uncertainty and short-term aid payments. The best way to support American producers would be to end your chaotic tariff policies that are hamstringing farmers in the first place. Meanwhile, your Administration has failed to reach any trade deal with China that would restore market access for U.S. soybean farmers.
We call on you and your Administration to immediately halt any plans to provide financial assistance to Argentina. Instead of subsidizing a foreign country to influence a midterm election on behalf of your friend – and further undermining America’s farmers in the process – you should prioritize lowering costs for American families and strengthening the nation’s agricultural competitiveness.
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