Trump Says US Support For Argentina Relies on Milei Winning Election

President Donald Trump has openly admitted that a $20 billion US bailout for Argentina is directly linked to President Javier Milei’s performance in the upcoming legislative elections on October 26th — a move that’s sparked backlash, market unease, and accusations of political meddling.

Speaking during Milei’s visit to the White House, Trump didn’t hold back. “If he wins, we’re staying with him. And if he doesn’t win, we’re gone,” he said. The US president repeatedly emphasized that Milei’s success at the polls was a condition for continued financial support, warning, “If he loses, we are not going to be generous with Argentina.”

The $20 billion deal, announced by the US Treasury last week, was intended to shore up Argentina’s battered currency, the peso, and prevent a looming financial crisis. The move was seen as a rare, direct intervention by the US in Latin American financial markets — underlining Washington’s growing strategic stake in Milei’s survival.

Trump described the deal as more than just economics, saying, “We are helping a great philosophy take over a great country.” He called Milei a “great leader” and declared his “Complete and Total Endorsement” on Truth Social, branding Milei’s platform as “MAGA all the way — Make Argentina Great Again.”

Despite the dramatic show of support, markets didn’t exactly cheer. Argentina’s dollar bonds dropped in value after the meeting, and the peso slipped slightly by the end of the day, though it remained higher than before the bailout was announced.

The Peronist opposition — who recently beat Milei’s party in key local elections in Buenos Aires province — hit back hard. Jorge Taiana, a top Peronist candidate, accused Trump of “extorting the Argentine people” and warned voters not to “accept that the US president tells us who to vote for.”

There are also questions at home for Trump about how such a major bailout aligns with his “America First” stance. Asked about the benefit to the US, Trump said, “We want to see it succeed.”

Milei, a self-described anarcho-capitalist, has slashed spending since taking office in December 2023 — cutting pensions, healthcare, education, and subsidies. Supporters credit him with bringing down inflation and reducing the deficit, but critics say the austerity has come at a steep social cost, and his approval ratings have dropped.

The October 26th elections are crucial. Milei’s party, La Libertad Avanza, holds a minority in Congress, and poor results could leave his aggressive reform agenda completely stalled. Several of his initiatives have already been blocked or overturned.

Polls suggest his national vote share will likely remain in the low to mid-30s, and recent corruption scandals within his party haven’t helped.

There’s also speculation about what Trump might expect from Argentina in return for US support. Argentina is one of the world’s largest lithium producers, and prior to Milei’s presidency, it had been strengthening ties with China. Trump’s strategic interest may not be purely ideological.

Meanwhile, the meeting between Milei and Trump wasn’t limited to Argentina. Trump took time to also fire a shot at Spain, threatening tariffs over what he described as its refusal to meet NATO defence spending commitments.

“I’m very unhappy with Spain,” he said. “I think I may do that,” referring to trade penalties.

US Treasury Secretary Scott Bessent, who joined the meeting, said continued support was based on Milei sticking to his free-market agenda. “This aid is predicated on robust policies,” he said, warning that a return to “failed Peronist policies” would force a US rethink.

However, Milei’s own economy minister, Luis Caputo, tried to dial things back, telling reporters that US support was tied to policy continuity, not directly to the election results.

“The ‘whatever it takes’ support that the US is giving Argentines continues,” Caputo said.

With just days to go before the midterms, Trump’s words have raised the stakes — not just for Argentina’s political future, but for US credibility in Latin America, and potentially global markets. Whether Trump’s bet on Milei pays off — or backfires — will soon be revealed.