A meeting between President Donald Trump and Argentina’s Javier Milei comes amid a deepening financial crisis in Washington’s South American ally which is receiving a multi-billion-dollar bailout.
Tuesday’s meeting follows the U.S. Treasury agreeing a $20 billion currency swap with Argentina’s central bank to stabilize the economy, stop a market collapse and support Milei’s libertarian reforms, which include cuts to state spending.
Newsweek has contacted Argentina’s foreign ministry for comment.
Why It Matters
Trump has repeatedly voiced his support for Milei and the affection is mutual. The Argentine president goes to the White House on Tuesday amid the backdrop of rising disapproval ahead of midterm elections this month. Milei is likely to benefit from his association with a U.S. president flush from the recent success of ending the war in Gaza.
What To Know
Milei has aligned himself with Trump’s rhetoric, pledging to cut government spending and once criticizing “woke leftists” at the World Economic Forum in January.
Ahead of their White House meeting, Milei praised the U.S. president’s efforts to bring about a ceasefire in Gaza, and he is expected to lobby for U.S. tariff exemptions or reductions for Argentine products.
Milei is also likely to want to find out how the U.S. will implement a $20 billion currency swap line to prop up Argentina’s peso and replenish its depleted foreign currency reserves.
The Trump administration intervened in Argentina’s currency market after Milei’s party suffered a big loss in a local election last month. Treasury Secretary Scott Bessent announced the $20bn financial rescue for the country, which boosted the peso.
However, given spending cuts within the U.S, the financial support was criticized by some, such as Democratic Senator Elizabeth Warren who said the money should have gone on health care for Americans, a sticking point in the ongoing government shutdown.
As Argentina faces financial turmoil ahead of midterm elections on October 26, the country’s voters can voice their support or opposition to Milei’s cost-cutting, free-market reform agenda.
What People Are Saying
Argentina’s president Javier Milei said of Trump after the Gaza deal: “Your commitment to life, freedom and peace has restored hope to the world.
U.S. Treasury Scott Bessent said on October 9: “Argentina faces a moment of acute illiquidity. The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”
Senator Elizabeth Warren wrote on X: “Instead of using our dollars to buy Argentine pesos, Donald Trump should help Americans afford health care.”
What Happens Next
Milei is likely to push for Trump’s support which could help the Argentine president ahead of legislative elections on October 26 in which half the seats in the Chamber of Deputies are up for grabs, and a third of those in the Senate will be contested.
Their results will determine if Milei can pass tough cost-cutting reforms, or face a legislative block for the next two years of his term.
