Critics of President Donald Trump have focused on a massive financial aid package for Argentina as the country’s soybean farmers take market share from U.S. producers.
“The frustration is immeasurable,” Caleb Ragland, president of the U.S. Soybean Association, said on Sept. 24.
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Sen. Chuck Grassley of Iowa summed up the concerns in an
Why would the US help bail out Argentina if Argentina is taking away the biggest market for American soybean producers? We should use leverage at every turn to hit the agricultural economy. Family farmers should be a top priority in negotiations by U.S. representatives.
— Chuck Grassley (@ChuckGrassley) September 25, 2025
On October 19, a reporter asked President Trump why he decided to support Argentina despite concerns from U.S. soybean producers.
President Trump responded, “Argentina is fighting for its life.” “Miss, you don’t know anything about it. . . . They don’t have any money. They don’t have anything.”
While U.S. aid to Argentina did not directly harm U.S. soybean producers, U.S. soybean producers have been hurt by another of President Trump’s policies, the trade war with China. But the timing of the aid and soybean export issues pose optical problems for the White House.
At the same time, President Trump is taking heat from Democrats over the size of his financial aid package related to the cost of expiring subsidies that made Affordable Care Act marketplace plans more affordable. Democratic Sens. Amy Klobuchar of Minnesota and Adam Schiff of California are among those making this claim.
Here’s a guide to what’s going on.
What does Argentina’s “relief” refer to?
Trump’s alliance with Argentina’s far-right president Javier Millei is key to the story.
Milley, who took office in December 2023, was elected president on a platform of libertarianism, a political ideology that emphasizes individual freedom and advocates limited government, as well as cutting government spending.
Milley, whom Trump calls his “favorite president,” gifted then-Trump ally Elon Musk with a chainsaw, a symbol of aggressive spending cuts, at the Conservative Political Action Conference in March.
But Millais faces challenges as domestic inflation remains high. Argentina’s currency, the peso, is cheap, so you will need more pesos to buy foreign products. This worsened the economic position of Argentines and posed a political challenge for Millay.
Ahead of Argentina’s crucial parliamentary elections, the Trump administration has proposed a $20 billion bailout known as the Currency Swap Facility to stabilize the peso. This is an agreement between two central banks to exchange debt under set terms. The agreement was officially signed on October 20th.
Treasury Secretary Scott Bessent framed the $20 billion in aid as aid to allies in need. If Mr. Millie loses the parliamentary elections, he will not be able to continue with his so-called “chainsaw economics” of drastically cutting social welfare spending.
“This is hope for the future,” Bessent told reporters on Oct. 14. “With the bridges and strong policies that the United States has given us, I think Argentina can become great again,” he said.
Critics say this could involve buying Argentine bonds at above-market prices, risking financial loss to the United States.
“Buenos Aires will need more than a balanced budget to restore economic stability,” wrote Brad Setzer, a senior fellow at the Council on Foreign Relations.
“The country’s economy has historically suffered from a shortage of foreign exchange. Its export base is small and heavy on primary products. External debt is relatively high and foreign exchange reserves are low.”
Has the US recently doubled the size of its aid to Argentina?
“President Trump is doubling down on Argentina’s bailout package. Meanwhile, he’s about to double the nation’s health insurance premiums,” U.S. Sen. Ruben Gallego wrote in an Oct. 15 X post.
🚨Trump is doubling down on bailouts for Argentina. Meanwhile, health insurance premiums are about to double.
$40 billion to help Trump’s elite friends. Reduce costs for American families by $0. https://t.co/Q6rLeWV6gz
— Ruben Gallego (@RubenGallego) October 15, 2025
Doubling Argentina’s aid has not yet materialized, but officials are considering it.
Bessent said on October 15 that he was exploring ways to increase U.S. aid to Argentina by an additional $20 billion “adjacent” to the initial $20 billion. He said the additional $20 billion could come from the private sector rather than taxpayers.
Separately, health insurance premiums could double for at least some Americans who receive enhanced subsidies for health insurance purchased on the Affordable Care Act Marketplace.
Unless Congress and President Trump extend certain subsidies before they expire at the end of this year, enrollees will have to pay an average of 114% more out-of-pocket in marketplace premiums, according to an analysis by the Kaiser Family Foundation, a health care think tank.
How are soybean farmers affected by U.S. aid to Argentina?
China is typically the U.S.’s largest buyer of soybeans, importing large quantities from October through March. But U.S. farmers have long worried about increased competition from South America, and President Trump’s high-tariff trade policies are “exacerbating the problem,” said Chad Hart, an economist at Iowa State University who specializes in agriculture.
After President Trump imposed tariffs on China earlier this year, China opted not to purchase U.S. soybeans and instead sourced from Argentina and Brazil.
“This year’s South American soybean crop is doing well, and growth is expected to continue next year,” said Todd Hubbs, assistant professor of agricultural marketing at Oklahoma State University. Argentina and Brazil’s soybean crops are “enough to meet China’s demand in the short term,” Hart said.
Millay temporarily lifted export tariffs on many agricultural products in a bid to increase foreign currency inflows to Argentina and offset the weakening peso. With the additional incentives, China almost immediately bought about 7 million tons of soybeans, Hubbs said.
So when President Trump offered aid to Argentina, the U.S. and China were already at odds over soybeans, but from the perspective of U.S. soybean producers, it couldn’t come at a worse time. To them, aid to Argentina seemed like retribution to a rival country that had been stealing their business.
President Trump has promised U.S. aid to farmers hurt by tariff policies, but that aid has stalled due to the government shutdown.
How does the scale of U.S. aid to Argentina compare to U.S. health subsidies?
Sen. Brian Schatz tied the size of Argentina’s policy to the cost of extending the Affordable Care Act (ACA)’s expanded subsidies, a key goal for Democrats due to the ongoing government shutdown.
“The cost of the Argentina bailout could be covered by ACA tax credits for one year,” Schatz posted on X on Oct. 14.
Given the initial $20 billion in aid to Argentina, which does not include a second tranche, Schatz has plans on track. The Congressional Budget Office, Congress’ nonpartisan number-crunching arm, projected that the loans in question will total $24.6 billion in fiscal year 2026.
Although the scale of the two expenditures is similar, it is notable that funds intended to support Argentina could not be transferred to the payment of medical credits. The U.S. Treasury has a pool of funds known as the Exchange Stability Fund dedicated to U.S. intervention in foreign exchange markets.
