Trump Conditions $20 Billion Argentina Aid Package on Milei’s Electoral Success

President Donald Trump explicitly linked a $20 billion US currency swap agreement with Argentina to the electoral prospects of the country’s libertarian leader Javier Milei during a White House meeting on Tuesday.

During a conversation, former U.S. President Donald Trump linked future American support for Argentina to the performance of President Javier Milei’s party in the country’s upcoming midterm elections on October 26, 2025. Trump explicitly warned that the U.S. would not be “generous” with aid if Milei’s faction loses, adding that a victory for a “socialist” alternative would fundamentally alter American willingness to assist the South American nation.

He emphasized to Milei that “victory is very important,” clarifying that U.S. approvals for support are contingent on the election’s outcome. Trump cautioned that without a win for Milei’s party, the U.S. would not “waste our time” helping Argentina.

In response, President Milei, who took office in December 2023, placed the blame for Argentina’s current economic troubles on his political opposition, stating that the nation’s “liquidity problem” is a direct consequence of the political attacks his administration has faced.

The $20 billion currency swap arrangement was designed to stabilize Argentina’s peso, which has been declining in value for years. Milei had been using the country’s reserves to prevent sharp devaluation as part of his inflation control strategy, but this approach depleted reserves ahead of $20 billion in debt obligations due next year.

The intervention aims to prevent a potential default and the need for drastic currency devaluation, which economists indicated would constitute “political suicide” due to the resulting price spike for Argentine citizens.

While the White House frames its financial support as aid to a key regional partner, President Trump characterized it as a move to “help a great philosophy take over a great country.” This direct linkage of a bailout to electoral results is a notable shift for a president who has historically condemned foreign election interference.

Milei’s La Libertad Avanza coalition recently underperformed in provincial elections in Buenos Aires, causing market concern about the sustainability of his economic program. His party has also faced several corruption scandals in recent months.

Argentine stocks declined following Tuesday’s news conference, suggesting financial markets remain skeptical that Trump’s endorsement will boost Milei’s electoral chances. The midterm elections will determine whether Milei can secure additional legislative support to pass further reforms, as his government currently lacks a congressional majority and has already had several key vetoes overturned.

Opinion polls indicate some Argentines are growing weary of Milei’s austerity measures, which supporters credit with reducing inflation and the deficit but critics note have resulted in significant cuts to pensions, education, health, infrastructure, transport, and utilities subsidies.

Source: BBC