Argentine President Javier Milei went to Washington on Oct. 13 for a second meeting with President Donald Trump in a month. During a bilateral lunch meeting between Trump and Milei, the US administration reaffirmed its $20 billion commitment to the anti-establishment leader who has transformed the Latin American nation through a series of sweeping economic reforms.
Can Milei make Argentina great again? Trump and senior White House officials certainly believe so – and the numbers support the hope of resurrecting the adage of “rich as an Argentine.”
Later this month, Argentina will hold midterm elections, the first real electoral test for President Milei. Predictive markets show Milei and his La Libertad Avanza cruising to victory, while the leftist Peronist-Kirchnerist coalition has been losing steam this month. If the libertarian firebrand’s party maintains its grip on power, the United States will continue to support Argentina. If not? Adios.
In front of the mainstream media, Trump not only extended his endorsement of Milei but also pledged US financial assistance to ensure the success of the “chainsaw economics” brand.
“I’m with this man because his philosophy is correct, and he may win, he may not win. But I think he’s going to win, and if he wins, we’re staying with him, and if he doesn’t win, we’re gone,” Trump said. “Because if a socialist wins, you’d feel a lot differently about making an investment.”
Despite the financial markets fearing that Milei will be unable to implement his economic reforms should the Peronists chip away at his presidency, Trump reiterated his confidence that Buenos Aires will ensure voters will shout afuera to the leftists that put Argentina in a horrible situation after 20 years of interventions, inflation, and incompetence.
Treasury Secretary Scott Bessent weighed in, noting that returning to this era “would cause a rethink” in Washington. In other words, if Argentina reverts to its pre-2023 governance and policymaking approach, the United States will reconsider the substantial economic package.
Earlier this month, the Trump administration authorized a $20 billion plan involving currency swap lines, a measure designed to inject liquidity into the financial system and stabilize the peso. It has been bedlam in Argentina’s financial markets for the past month, with stocks falling, the currency weakening, and bond prices tanking. This is how poorly investors view Peronists and Kirchnerists.
“We stand with the President [Milei] and what he stands for, the hope for the Argentinian people,” Bessent told reporters. “They went from one of the richest countries in the world to a ton of debt, and I think that with the bridge the US is giving them and the strong policies that Argentina can be great again.”
But what about soybeans? It is merely a wedge inserted by the world’s largest buyer, the White House says.
Is Argentina really about China? It is no secret that the Chinese Communist Party and its Belt and Road Initiative spotted an opportunity years ago and captured the soul of Buenos Aires. In addition to the same currency swap initiative, Beijing has also invested billions in Argentine infrastructure and sectors, thereby ensuring a significant influence over the South American country.
According to Bessent and Trump, Milei has committed to eradicating the red dragon. While US assistance is not contingent on Buenos Aires halting currency swaps with Beijing, Bessent did demand Argentina curtail China’s presence in ports, military bases, and observation facilities.
This goal might be easier said than accomplished, especially after China redirected its soybean consumption from the United States to Argentina. As Liberty Nation News has reported, the world’s second-largest economy has not purchased any of the crop from American farmers this marketing year, taking advantage of Argentina’s elimination of certain taxes, effectively lowering prices.
When pressed on whether this is an issue in US-Argentina relations, Trump scoffed at the notion. “China likes to draw wedges. I guess that’s natural. It’s China, and it’s natural. But it’s not going to mean anything in the end,” Trump said. Bessent has previously asserted a similar thing: China is using Argentina as a pawn and harming American soybean farmers.
Besides, Trump has taken a different approach to tackling this issue. Shortly after he met with Milei, he took to his Truth Social and made quite an announcement:
“I believe that China purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers, is an Economically Hostile Act. We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution. As an example, we can easily produce Cooking Oil ourselves, we don’t need to purchase it from China.”
The threat of the United States no longer buying cooking oil from China erased approximately $450 billion in market cap on Wall Street in just an hour or two. It’s bad for you anyway.
Despite Trump’s critics calling the $20 billion a bailout for Milei because he is traversing from crisis to crisis, the political rockstar is well on his way to making Argentina great again. Poverty is down, inflation has cratered, growth has been gangbusters, budgets have been balanced, and business and consumer confidence have been high. Bessent described the currency swaps as a “bridge” to get Milei to the midterm elections. So far, it appears to be working. But will he survive in 2027 when everything is up for grabs?