Trump issues ultimatum to Argentina over funding
Photo: Donald Trump, President of the United States (Getty Images)
US President Donald Trump has warned that American aid to Argentina could be reduced if libertarian leader Javier Milei loses the upcoming elections, according to TRT World.
Trump called Milei a "great leader" and promised to "fully endorse" his ideological ally, stressing that Milei’s success is crucial for continued US assistance to Argentina.
The meeting between Trump and Milei took place against the backdrop of a $20 billion US-Argentina currency swap, in which stable US dollars are exchanged for volatile pesos to support Argentina’s struggling economy. However, Trump warned that if Milei loses, "we are not going to be generous with Argentina."
Milei, in turn, received direct assurances of support from Trump: "He's MAGA all the way, it's 'Make Argentina Great Again,'" Trump said, referring to his own "Make America Great Again" slogan.
The US administration has already pledged $20 billion to back Argentina’s economy, which remains in dire condition. Yet the aid has so far failed to calm markets or improve Milei’s standing in pre-election polls. The October 26 elections will determine whether Milei can pursue his austerity and spending-cut reforms or face legislative gridlock over the next two years.
Trump emphasized that US support for Argentina benefits Washington as well, describing Milei’s government as embodying a "great philosophy" and serving as a strategic ally in Latin America. US Treasury Secretary Scott Bessent also confirmed readiness to take "whatever exceptional measures are warranted to provide stability to markets," marking a rare case of direct US intervention in Latin American currency markets.
Milei, commenting on the meeting, said US backing represents recognition of a strategic partnership and the defense of freedom, reaffirming Argentina’s alignment with US and Israeli interests.
Meanwhile, speculation in Argentina suggests Trump may seek political or economic concessions from Milei in exchange for continued financial support. Economy Minister Luis Caputo insisted that there are no current plans for dollarization or changes to the peso’s exchange rate despite pre-election rumors.
The meeting and Trump’s remarks underscore what’s at stake for Argentina: the outcome of the election will shape not only domestic policy but also the future of international support for the country.
Earlier, President Milei held a rock concert in Buenos Aires in an effort to boost his popularity amid the deepening economic crisis and political scandals. Recently, he was evacuated from a campaign event after protesters pelted his car with stones, amid a corruption scandal involving his sister, Karina Milei.
