Trump won't 'waste our time' with Argentina if Milei loses in midterms

Highlights:

• Trump's support hinges on Milei's midterm success
• Argentine markets react negatively to Trump's comments
• US aid not tied to ending China swap, Bessent says

US support for Argentina hinges on the ruling party of President Javier Milei succeeding in this month's midterm legislative elections, President Donald Trump said on Tuesday, saying "we're not going to waste our time" if Milei's party does not win.

Trump and Milei were meeting at the White House just days after the US agreed to provide a major financial lifeline to the South American nation.

"I'm with this man because his philosophy is correct, and he may win it," Trump said ahead of a White House lunch with Milei and members of Trump's cabinet. "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's remark rattled Argentine markets that had been buoyed by the support package recently announced by US Treasury Secretary Scott Bessent. The centerpiece of that deal is a $20 billion currency swap with Argentina's central bank, exchanging stable US dollars for volatile pesos. Argentina's main stock market reversed earlier gains and was down about 2% following Trump's comments.

Bessent said at Tuesday's meeting that the package, full details of which have not been announced, is predicated on the continuance of economic policies favored by the Trump administration.

Well before Elon Musk's Department of Government Efficiency, or DOGE, tore through US government departments, Milei took his own "chainsaw" to Argentina's government, cutting tens of thousands of public sector jobs to address a long-running fiscal deficit. Milei also created a deregulation ministry to target sectors where officials said local prices were artificially high due to a lack of competition.

"Going back to Peronist policies would cause a rethink," Bessent said.

Bessent said, however, that the aid package was not dependent on Argentina ending a separate swap line arrangement with China.

The economic lifeline for Argentina marks an unusual move for the US, particularly under an administration that has largely eschewed major foreign interventions.

The White House has framed the deal as a strategic effort to stabilize a key regional ally. But it has drawn criticism at home.

Many Democratic lawmakers have accused Trump of prioritizing foreign bailouts and investor protections while the US government remains shut down. American farmers have also voiced frustration, noting that China has shifted soybean purchases from US producers to Argentine growers this year.

While details of the agreement remain unclear, the bailout could offer Milei a much-needed political boost as he works to stave off a deepening economic crisis and shore up his party's support. He suffered a major setback last month when his party lost a key provincial election and now faces a critical midterm vote later this month.

"It benefits the government to reach the election with a stable exchange rate, without having the peso devaluing, and without draining the central bank's reserve," said Ignacio Labaqui, a political analyst in Buenos Aires.

At the concert-style Buenos Aires launch party of Milei's latest book last week, several of his supporters said that seeking help from Trump was simply a tool at his disposal and should not be politicized.

"No country grows on its own, without outside help," said Kevin Nehuen, 24, a Milei supporter who traveled from the province of Neuquen in the Patagonia region. He pointed to how previous Argentine governments agreed to currency swaps with China to boost reserves.

But the aid has also faced criticism from Argentina's left. From her apartment in Buenos Aires, where she is serving a sentence for corruption, former President Cristina Kirchner tweeted last month that "the 'help' from the 'forces of the north'" represents "food for today and hunger for tomorrow."

The assistance also underscores the extent to which the Trump administration is willing to support a political ally who has cultivated strong ties with the president and American conservatives in recent years.

Milei, whom Trump has described as his "favorite president," was one of two world leaders onstage during Trump's inauguration.