Donald Trump has issued a stark warning to Argentina, saying the United States will halt its promised $20 billion aid package if President Javier Milei fails to secure victory in this month’s legislative elections. During Milei’s visit to the White House, Trump pledged his political support but made it clear that his administration’s financial generosity hinges on the Argentine leader’s success at the polls.
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Trump’s Conditional Support
Speaking alongside Milei, Trump said: “If he loses, we are not going to be generous with Argentina.” The U.S. president praised Milei’s leadership, calling him a man with the “correct philosophy,” while adding, “He may win and he may not win, I think he’s going to win. And if he wins, we are staying with him, and if he doesn’t win, we are gone.” The comments highlighted how Washington’s aid commitment is tied closely to Milei’s political fate.
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Milei’s Political Struggle
Milei’s administration faces an uphill battle as Argentina’s economic crisis deepens and his approval ratings fall. The upcoming October 26 midterm elections will determine whether his minority party can expand its influence in Congress or face legislative gridlock for the next two years. Failure to secure more seats could stall Milei’s ambitious austerity reforms aimed at stabilizing Argentina’s economy.
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Trump’s “MAGA” Endorsement
During the meeting, Trump called Milei a “great leader” and declared, “He’s Maga all the way, it’s ‘Make Argentina Great Again.’” The remark underscored Trump’s ideological alignment with the libertarian president, whom he has repeatedly endorsed. However, critics have questioned how Trump’s $20 billion bailout aligns with his “America First” policy. Asked about the contradiction, Trump said, “We are helping a great philosophy take over a great country. We want to see it succeed.”
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Financial Crisis Deepens
Argentina’s economy continues to face extreme pressure despite U.S. backing. The government has spent over $1 billion defending the peso in recent weeks, a move many economists deem unsustainable. Milei’s supporters in Washington have since pushed through a $20 billion bailout to help stabilize the country’s finances. U.S. Treasury Secretary Scott Bessent said last week, “Argentina faces a moment of acute illiquidity,” emphasizing Washington’s strategic interest in preventing a financial collapse.
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Market Reaction and US Role
The bailout announcement temporarily boosted Argentina’s bonds and eased pressure on the peso. It marked one of the rare moments of direct U.S. intervention in Latin American currency markets, signaling the geopolitical significance of Milei’s government to Washington. Yet, despite the short-term gains, investor confidence remains fragile, and markets continue to react cautiously to the nation’s volatile politics.
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Speculation Over Hidden Agendas
In Buenos Aires, speculation is growing over what Trump might expect in return for his financial and political support. Before Milei’s presidency, Argentina had been expanding its economic ties with China, particularly in lithium exports. The Argentine president’s office confirmed that both leaders planned to discuss “multiple topics” during their White House meeting, hinting at broader geopolitical considerations behind Washington’s financial assistance.
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Trump Threatens Spain Over Defense Spending
During the same press briefing, Trump also lashed out at Spain, criticizing Prime Minister Pedro Sánchez for failing to meet NATO’s 5% defense spending target. “I’m very unhappy with Spain,” Trump said. “They’re the only country that didn’t raise their number up to 5%. I was thinking of giving them trade punishment through tariffs because of what they did, and I think I may do that.” Spain has defended its stance, saying it contributes heavily to NATO operations in Latvia, Slovakia, Romania, Bulgaria, and Turkey, despite spending only 2.1%.
