US President Donald Trump has promised to boost Argentina’s economy with a $20 billion currency swap, but only if the South American country’s right-wing president wins the next election.
Javier Millay, the president who calls himself an anarcho-capitalist, was in Washington, D.C., on Tuesday for his latest visit to the White House.
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“We think he’s going to win. He should win. If he wins, we’ll be very supportive,” Trump said. “If he doesn’t win, we won’t waste any time because we have someone who, with his philosophy, has no chance of making Argentina great again.”
Since taking office in December 2023, Milley has visited the United States at least 12 times, including attending Trump’s second inauguration. The two leaders share strong public ties.
But Mr. Milay’s latest meeting with Mr. Trump comes as his coalition, La Libertad Avanza (Freedom Forward), faces a series of scandals in the run-up to Argentina’s Oct. 26 midterm elections.
President Trump appeared eager to help Milley overcome her sluggish poll numbers as he hosted the Argentine leader in the White House cabinet room on Tuesday.
He told reporters that the economic safety net the United States is giving Argentina is his way of “helping a great philosophy take over a great country.”
“You will win the election,” Trump told Milley. “We support you. We support you today. We fully support you. The people of Argentina like me. Many people like me.”
conditional relief
The conditional nature of Argentina’s bailout calls into question President Trump’s efforts to prop up Argentina’s struggling economy.
Milay’s surprise victory in the 2023 presidential election was widely seen as a backlash against the former leftist government of Alberto Fernández, under whose leadership inflation rose to more than 200%.
But although Mr. Millay has brought inflation under control, the Argentine peso remains weak, and critics have accused the South American president of worsening poverty by cutting government programs for low-income residents.
On Tuesday, a reporter asked President Trump point-blank whether U.S. support for Argentina depended on La Libertad Avança’s victory in the upcoming election.
“Well, if they don’t, we won’t last long,” Trump replied.
The US president then reflected on the potential losses for Milley’s party. “If that happens, we won’t be lenient with Argentina. If he loses, we won’t be lenient with Argentina.”
Trump also hinted at the possibility of further economic turmoil if Milley’s “far-left” rivals prevailed, but it was unclear which opposition figure he was referring to.
Although Millay himself will not take part in the Oct. 26 vote, his party, La Libertad Avanza, will contest half of the seats in Argentina’s lower house and one-third of the Senate.
The Argentine National Congress’s leadership will determine whether Mr. Millei can continue to implement far-reaching austerity measures, including pushing for reforms to the federal government.
Millais illustrated the dramatic nature of his cost-cutting campaign by turning to props. He was known for brandishing a chainsaw on stage and slamming a piñata with the name of Argentina’s central bank on it while running for president.
Rebellion against Millais
But while Millei’s victory in the 2023 presidential election was a strong rebuke to Argentina’s left, recent campaigns have shown public support for a cooling of her policies.
On September 7, elections for parliamentary seats were held in Buenos Aires province, where the capital is located, and La Libertad Avanza was defeated by its rival coalition, the left-wing Justice Party.
The party received over 46% of the vote, compared to La Libertad Avanza’s 34%.
Also in the same month, Millais was hit by a personal scandal when her sister and close aide Karina Millais was implicated in a bribery scandal.
Karina Millay is the presidential secretary-general, and leaked audio released to Argentine media appears to show the then-head of the National Disability Agency accusing her of accepting kickbacks in exchange for government contracts.
Both Millay brothers deny the charges, with Javier standing by his sister so far. However, the resulting scandal placed a harsh spotlight on Milais’ actions as president.
Milley had vetoed a parliamentary bill to increase benefits for people with disabilities, but in September the National Assembly rallied and formed an overwhelming majority to override his veto with a 63-7 vote.
He has since repeated this feat, overriding Milley’s veto and restoring congressional funding for universities and pediatric health care.
Still, despite the setback, Mr. Trump and his officials used Tuesday’s meeting as a platform to promote Mr. Milley’s policies and project confidence in the party’s medium-term prospects.
“We think he’s done a very good job and will continue with his reform plan,” Treasury Secretary Scott Bessent told reporters.
project confidence
Like Trump, Bessent stressed that the $20 billion promised to Argentina depended on Milley’s electoral success.
“We are confident that the president’s party and coalition will perform well in the elections. This support is predicated on strong policies,” Bessent said. “A return to failed Peronist policies will cause the United States to reconsider.”
Meanwhile, President Trump acknowledged that Argentine voters may be experiencing “some pain” as a result of Milley’s economic reforms.
However, he defended Millais, saying, “Without him, Argentina would be lost.”
Asked what advice he had for South American leaders, Trump used the question to accuse the press of treating Milley poorly.
“My advice is to stick to his principles because he’s right and he’s proven he’s right. He has one problem: There are people who give him a very bad reputation,” Trump said.
“We all know he’s doing the right thing. But there’s a sick culture of the radical left, a very dangerous group, and they’re trying to make him look bad.”
The comment reflected President Trump’s own hostile relationship with the press. During his appearance with Milley, President Trump once again criticized domestic journalism broadcasters such as ABC News, labeling them as “fake news.”
Mr. Trump, who campaigned on the platform of “America first,” has come under intense scrutiny over his approach to Argentina.
The $20 billion currency swap, in which U.S. dollars are transferred to Argentina in exchange for pesos to increase Argentina’s value, comes after Bessent said he would take “exceptional measures” to stabilize the South American country.
This includes withdrawing from the Exchange Stabilization Fund, an emergency fund under the purview of the Ministry of Finance.
On Tuesday, President Trump even joked that he was willing to send missiles to Argentina to help fight Milley’s opposition.
“Does Argentina need a tomahawk?” Trump joked, laughing politely. “I think your opponents need them.”
