Washington, 15 October (H.S.): President Donald Trump explicitly tied a $20 billion U.S. aid package for Argentina to the political success of its leader, Javier Milei, stating that American support is contingent on Milei’s party performing well in the upcoming midterm elections. During a White House meeting, Trump made it clear that the financial lifeline was intended to bolster his libertarian ally ahead of the crucial October 26 vote.The election is coming up very soon, President Trump said on Tuesday, welcoming President Milei.
If he loses, we are not going to be generous with Argentina… our approvals are somewhat subject to who wins the election. This direct intervention links U.S. foreign policy to the domestic electoral outcome of a key South American partner.The aid, a $20 billion currency swap, is designed to stabilize Argentina’s struggling peso and help the nation avoid another debt default. However, the markets reacted with skepticism to Trump’s conditional endorsement, and Argentine stocks fell following the announcement.
Key points from the meeting and its context include:
A Test for Milei: The midterms are widely seen as a referendum on President Milei’s aggressive free-market reforms and severe austerity measures. His La Libertad Avanza coalition lacks a majority in Congress, and a poor electoral result could stall his entire agenda.
Economic Strain: Milei’s policies have helped lower inflation but have come at a significant social cost, with deep cuts to pensions, subsidies, and public services.
Milei’s Position: The Argentine leader praised President Trump’s policies and blamed his country’s economic crisis on political attacks we have suffered from our opponents.
President Trump’s candid remarks underscore his transactional approach to foreign policy and his personal support for Milei, an ideological counterpart. The statement puts immense pressure on Milei’s government, with both its economic stability and political future hanging in the balance ahead of the election.
Hindusthan Samachar / Jun Sarkar
