US President Donald Trump has issued a sharp warning, threatening to withdraw American financial aid to Argentina if his close ally, President Javier Milei, fails to secure victory in the country’s crucial midterm elections later this month.
Speaking during Milei’s visit to the White House on Tuesday, Trump made it clear that continued US support would depend on Milei’s political success. “If he loses, we are not going to be generous with Argentina,” Trump declared. “If he wins, we’ll stay with him — and if he doesn’t, we are gone.” The US president went on to praise Milei as a “great leader,” adding, “He’s MAGA all the way — it’s ‘Make Argentina Great Again.’”
The threat carries significant weight, as Argentina faces a severe economic crisis marked by soaring debt, inflation, and a collapsing currency. Earlier this month, the Trump administration, through Treasury Secretary Scott Bessent, pledged a $20 billion financial package to stabilize Argentina’s economy — a rare move signaling direct US intervention in Latin American currency markets.
The bailout followed Argentina’s costly efforts to defend the peso, spending over $1 billion in recent weeks to curb its sharp decline. Many analysts have criticized the intervention as politically motivated, suggesting it serves as a favor to Milei’s government rather than a purely economic measure. The move has also raised questions about US intentions amid Argentina’s growing economic ties with China — a major player in the global lithium market.
The October 26 midterm elections are critical for Milei, whose party, La Libertad Avanza, currently holds only a minority in Congress. A poor showing could block his ambitious cost-cutting reforms and deregulation agenda, while a strong result would give him the mandate needed to advance his sweeping free-market policies.
Defending his stance, Trump argued that the US aid aligns with his “America First” philosophy, stating, “We’re helping a great philosophy take over a great country. We want to see it succeed.” However, despite Washington’s financial backing, markets remain uneasy, reflecting deep uncertainty over Argentina’s political and economic future.
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