In a high-stakes moment for Argentina’s future, President Javier Milei is set to meet U.S. President Donald Trump at the White House on October 14, 2025, as the South American nation faces a turbulent economy, mounting scandals, and pivotal midterm elections. The visit marks the second time the two leaders have met in just a month, underscoring the urgency of Argentina’s predicament and the deepening alliance between Milei and Trump.
Two years into his presidency, Javier Milei—a self-styled libertarian firebrand and political outsider—finds himself at a crossroads. Elected in December 2023 on a wave of anti-establishment fervor and promises to slash government spending, curb triple-digit inflation, and overhaul the Argentine economy, Milei initially made waves with his unconventional style and bold reforms. According to NPR, his campaign antics—including wielding a chainsaw as a symbol of his intent to cut public spending—captured the imagination of voters weary of Argentina’s revolving door of politicians and chronic crises.
But as of October 2025, the honeymoon is decidedly over. The country’s economy remains fragile, with average monthly pay languishing below $700. Inflation has eased somewhat, and Milei’s government has managed to balance the books for the first time in over a decade, but the deep austerity measures—deregulation, subsidy cuts, slashing welfare spending, and freezing university funding—have made life tougher for millions. According to the national statistics agency, the cost of living continues to outpace stagnant incomes, and social unrest simmers just below the surface.
Recent weeks have brought further challenges. On September 7, Milei’s coalition, La Libertad Avanza, suffered a stinging defeat in the Buenos Aires provincial elections at the hands of the left-leaning Peronist coalition, Fuerza Patria. Milei himself called it a “clear defeat,” but pledged to stick to his reformist agenda. Predictive markets, as reported by NTD, nonetheless suggest that Milei’s coalition is regaining momentum as the October 26 midterms approach, with expectations that La Libertad Avanza could secure the most seats in the National Congress.
Still, public support for Milei has cratered. NPR cites a recent poll showing his disapproval rating at a staggering 63 percent—a new low. The mood on the streets is one of skepticism and fatigue. Weekly pensioners’ protests outside the National Congress, once a fixture of civic activism, have seen dwindling turnouts. Yolanda Gutierrez, a widowed pensioner from Salta, summed up the mood: “We’re not doing very well, especially pensioners like me. Prices keep going up, but our incomes haven’t.” She added, “Things are tough. Young people really have to struggle.”
Even some former supporters are wavering. Elba Soria, a 52-year-old concertgoer at Milei’s recent Buenos Aires book launch-cum-rock concert, described her support as “an expression of hope.” She explained, “We bet on him because there wasn’t another option. We didn’t like the future that we saw.” But for others, like retired teacher Eva Marcilio, frustration has boiled over: “We have a perverse president. I don’t know what world he’s living in. He doesn’t see what’s happening to people. It’s very sad. And every day, it gets worse.”
Amid this turmoil, the U.S. has stepped in with a $20 billion rescue package, finalized just as Argentina’s foreign reserves threatened to run dry and the peso teetered on the brink. The Trump administration’s intervention is designed to stabilize the currency and support Milei’s government through the volatile election period. According to NTD, the U.S. Treasury is prepared to “take whatever exceptional measures are warranted to provide stability to markets.” In the words of a senior Treasury official, “It’s not a bailout at all,” emphasizing that no money is directly changing hands and that the Exchange Stabilization Fund remains untouched. The official added, “The international community … is unified behind Argentina and its prudent fiscal strategy, but only the United States can act swiftly. And act we will.”
President Trump, for his part, has been effusive in his support. In a recent statement, he said, “We’re backing him a hundred percent. We think he’s done a fantastic job. He, like us, inherited a mess.” The Trump administration’s approach is clear: as long as Milei continues with his “strong economic policies,” the U.S. will help “bridge him to the election.” The aim, as articulated by Treasury officials, is to prevent market instability from derailing Milei’s sweeping reforms.
Milei’s record on reform is both dramatic and controversial. Within his first year, he halved the number of government ministries, eliminated tens of thousands of public sector jobs, and slashed taxes—eliminating 90 percent of them, keeping only income, value-added, and trade-related levies. He lifted price and rent controls, reduced regulatory burdens, and pushed for the privatization of state-owned companies. Subsidies were cut, welfare spending reduced, and university funding frozen. Pension reforms, however, remain on hold, with Milei’s administration vetoing attempts to increase pension and disability spending. As reported by NTD, further pension reform is off the table until broader labor market issues are addressed.
The reforms have won praise from international investors and the U.S. government, but have also fueled social tensions and deepened inequality. Critics argue that the cuts have disproportionately hurt the most vulnerable, while supporters insist that tough medicine is needed to cure Argentina’s long-standing economic malaise. As Maria de los Angeles Lopez, a house cleaner who traveled hours to attend Milei’s concert, put it: “We have all of our faith in Javier Milei because we know that things are going to change, even if many people say they won’t.”
With midterm elections looming on October 26, the stakes could hardly be higher. Half of the seats in the National Congress—127 in the lower house and 24 in the upper house—are up for grabs. The outcome will determine whether Milei can press ahead with his agenda or face legislative gridlock. The Peronist-Kirchnerist coalition, which once dominated Argentine politics, has seen its momentum fade, but remains a potent opposition force.
As the world watches, Argentina stands at a fork in the road. Will Milei’s radical reforms and the U.S. lifeline be enough to steady the ship, or will public discontent and opposition resistance spell trouble ahead? For now, the president is betting on his signature blend of economic shock therapy and political showmanship to carry the day. But with the economy still faltering and scandals swirling, it’s anyone’s guess how long the miracle will last.