Donald Trump hailed embattled Javier Milei as a “great leader” on Tuesday – but the US president said that promised financial aid for Argentina is dependent on the results in this month’s midterm elections.
“Your poll numbers I hear are pretty good, but I think they’ll be better after this,” Trump said as he hosted right-wing Milei at the White House, days after his administration promised $20 billion to prop up the peso.
“And you know, our approvals are somewhat subject to who wins the election, because if a socialist… wins you feel a lot differently about making an investment,” said the Republican leader, adding that the election is being “watched by the world.”
“The victory is very important,” added Trump.
Asked by reporters if Washington’s rescue package had any chance of failure, Trump responded: “Anything can fail.”
Milei, 54, making his first trip to the White House, thanked his US counterpart for his support of the “free world” amid the “threat of 21st-century socialism around the world.”
The La Libertad Avanza leader is banking on a strong show of economic and political support from his US ally.
Trump’s administration has already promised US$20 billion to prop up Argentina’s struggling economy but his backing has failed to entirely calm the markets – or help Milei’s polling ahead of crunch elections.
“We love them. They have a great leader,” Trump said when a reporter asked for his message to the people of Argentina as he shook hands with Milei outside the West Wing.
Both then gave the thumbs-up sign for the cameras before heading inside for lunch.
With Argentina struggling to stave off yet another financial crisis and Milei’s disapproval ratings rising, the chainsaw-wielding libertarian is looking north for help.
Trump has repeatedly voiced political support for Milei, while backing it up with a promise of huge economic aid.
But Trump himself faces questions – not least from rival Democrats – about how a bailout for Buenos Aires tallies with the “America First” policy that has seen Washington slash foreign aid for most countries.
“I want to thank [US Treasury] Secretary [Scott] Bessent for his tremendous work in helping to overcome Argentina’s liquidity problem as a result of the political attacks we received from our opponents, who do not want Argentina to embrace the ideas of freedom but rather outdated ideas that lead to socialism,” Milei said as he took the floor.
Meanwhile the markets remain spooked by Argentina, and Milei’s situation ahead of the October 26 elections has not improved.
The results of the elections will dictate whether Milei can pass tough cost-cutting reforms or will face a legislative brick wall for the next two years of his term.
About half the seats in the lower house Chamber of Deputies are up for grabs, and a third of those in the upper house Senate.
‘Acute illiquidity’
That prompted Milei’s allies in Washington to step in with a financial bailout.
In recent weeks, highly indebted Argentina has had to spend more than a billion US dollars to defend the peso, a strategy most economists believe is unsustainable.
“Argentina faces a moment of acute illiquidity,” said US Treasury Scott Bessent last week, announcing a deal that would give Argentina access to US$20 billion.
“The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”
The announcement sparked a rally in Argentine bonds and stocks and helped ease pressure on the peso.
It also marked a rare instance of direct US intervention in Latin American currency markets, underscoring Washington’s strategic interest in Milei’s success.
“The United States saw this attack on Argentina, on the ideas of freedom, on a strategic ally – and that’s why they supported us,” Milei said in a radio interview Monday.
“They know we are a true ally,” Milei said, referring to Argentina’s alignment with US and Israeli interests.
Milei will be meeting Trump just a day after the US president made a lightning visit to Israel and Egypt, where he revealed in praise for his ceasefire plan in Gaza, hours after Hamas released hostages in exchange for prisoners.
Trump addressed the Knesset, Israel’s Parliament, before flying to Egypt for a Gaza summit where he and the leaders of Egypt, Qatar and Turkey signed the declaration as guarantors to the Gaza deal.
Milei hailed Trump on Monday on social media. “My deepest admiration and gratitude to President Donald Trump for his extraordinary leadership and courage in ending the war, also achieving the release of all the hostages, including three Argentines,” wrote the President.
“Thank you, President Trump. Your commitment to life, liberty and peace has restored hope to the world,” he continued.
“It is an honour to consider you not only an ally in the defence of these values, but also a dear friend and an example of leadership that inspires all of us who believe in freedom.”
Milei travelled to Washington on ARG01, Argentina’s presidential plane. The estimated cost of the trip is around US$200,000.
Upon taking office in December 2023, Milei has made more than 20 overseas trips. He initially took flights on commercial or private flights, but switched the presidential fleet citing security measures.
He is scheduled to attend a ceremony in honour of Charlie Kirk, the right-wing activist who was murdered on September 10 in Utah before returning to Argentina.
‘Fantastic job’
During a recent meeting, Trump said that Milei was doing a “fantastic job.”
“He, like us, inherited a mess, and what he’s done to fix it is good,” Trump said during a meeting on the sidelines of the United Nations General Assembly. “We’re backing him 100 percent.”
In Argentina, there has been fevered speculation about what Trump might want from Milei in return for his support.
Before Milei took power, Argentina – a major lithium producer – had been deepening ties with China.
Trump said that he would be “displeased” if Argentina were to establish agreements with the Chinese Armed Forces for military bases in the south of the country.
“I would like them not to do anything with China. I would be displeased if they did anything with the Chinese Armed Forces,” Trump said.
On Sunday, Economy Minister Luis Caputo ruled out immediate plans to dollarise the economy or alter the floating exchange rate band, amid speculation of post-election changes.
“The United States is willing to keep buying pesos,” he said.
Argentina’s economic team remains tight-lipped but Caputo hinted strongly that further assistance will be forthcoming.
“There will likely be an announcement on Tuesday,” Caputo said in an interview.
Several government officials have denied reports that the US has asked Argentina to end its existing US$18-billion currency swap with China’s Central Bank, which was renewed last year.
“I don’t think part of the agreement is to exclude China from Argentina,” Cabinet Chief Guillermo Francos said last Friday.
Bessent, however, said in an interview with Fox News that Milei is committed to removing China from the country, a claim which sparked reaction from the Chinese Embassy in Buenos Aires, which accused the US of “acts of hegemony and bullying.”
– TIMES/AFP/NA
