On October 14, 2025, the White House became the stage for a high-stakes diplomatic and financial drama, as former President Donald Trump welcomed Argentina’s President Javier Milei for a meeting that would ripple through both U.S. and South American politics. The gathering came just days after the United States agreed to a $20 billion currency swap bailout for Argentina—a move that’s drawn both applause and sharp criticism, and one that may prove pivotal as Argentina approaches crucial midterm elections later this month.
According to Reuters, President Trump made no secret of the political calculations behind the bailout. He stated bluntly that U.S. support for Argentina hinges on Milei’s ruling party succeeding in the upcoming midterm legislative elections, scheduled for October 26. “We’re not going to waste our time if Milei’s party does not win,” Trump declared, adding, “I’m with this man because his philosophy is correct, and he may win it. He may not win, but I think he’s going to win. And if he wins, we’re staying with him. And if he doesn’t win, we’re gone.”
These remarks, reported by BBC and Reuters, sent shockwaves through Argentine financial markets. The country’s main stock index, which had been buoyed by news of the U.S. support package, reversed earlier gains and dropped about 2% following Trump’s comments. The centerpiece of the bailout, as confirmed by U.S. Treasury Secretary Scott Bessent, is a $20 billion currency swap with Argentina’s central bank, exchanging stable U.S. dollars for volatile pesos.
The deal couldn’t have come at a more critical time for Argentina. President Milei, a self-proclaimed radical libertarian, has been fighting to stave off a looming financial crisis. The country’s central bank reserves have been running dry as Milei tried to prop up the peso, all while facing $20 billion in debt payments due next year. The currency swap provides a much-needed lifeline, allowing Argentina to avoid an immediate crisis by letting the peso devalue sharply, rather than draining what little is left in its reserves.
But as BBC pointed out, this strategy is a double-edged sword. While it may help Milei’s government limp through the election season, economists warn that a sharp devaluation could trigger another spike in inflation—potentially a political disaster for Milei and his party. Some Argentines are already weary of the government’s austerity measures, which have succeeded in cutting inflation and the deficit but at a significant social cost. To make matters worse, Milei’s party has recently been rocked by corruption scandals, including one involving his sister, further complicating the political landscape ahead of the vote.
Trump’s visit and the bailout have also sparked controversy back in the United States. According to Nexstar Media and The New York Times, Democrats have seized on the moment to accuse the former president of prioritizing foreign bailouts and investor protections while the U.S. government remains paralyzed by a shutdown. On the very day of Trump’s meeting with Milei, the Senate voted for the eighth time to reopen the government as the shutdown entered its second week—a vote that was expected to fail. For the first time, Senate Democrats were unable to bring their own funding measure to the floor, one that would have permanently extended enhanced health insurance premium subsidies and restored nearly $1 trillion in Medicaid cuts.
“The Democrats are getting killed on the shutdown,” Trump said earlier that day, according to Nexstar Media. His critics, however, argue that the optics are less favorable: while the domestic government remains at a standstill, Trump is seen aiding a foreign leader and, by extension, wealthy investors. Major hedge funds—including BlackRock, Fidelity, and Pimco, all with ties to Treasury Secretary Bessent—stand to benefit from the bailout, as reported by The New York Times. American farmers have also voiced frustration, pointing out that China has shifted soybean purchases from U.S. producers to Argentine growers this year, putting further pressure on the U.S. agricultural sector.
Bessent, for his part, defended the bailout as a strategic move. “U.S. business leaders want to deepen ties with Argentina,” he argued, insisting the deal could help stabilize the Western Hemisphere. He also clarified, as Reuters noted, that the aid package was not contingent on Argentina ending a separate swap line arrangement with China, and that a return to Peronist policies would cause a “rethink” of U.S. support.
For Milei, the stakes couldn’t be higher. His party suffered a major setback last month, losing a key provincial election, and now faces a critical test at the ballot box. The U.S. bailout, while controversial, offers a shot at stability—at least until the votes are counted. “It benefits the government to reach the election with a stable exchange rate, without having the peso devaluing, and without draining the central bank’s reserve,” said Ignacio Labaqui, a political analyst in Buenos Aires, in comments to Reuters.
Yet not everyone in Argentina is convinced. From her apartment in Buenos Aires, where she is serving a sentence for corruption, former President Cristina Kirchner tweeted last month that “the ‘help’ from the ‘forces of the north’ represents ‘food for today and hunger for tomorrow.’” This sentiment is echoed by many on the left, who warn that foreign bailouts often come with strings attached and long-term consequences.
At the same time, some of Milei’s supporters see the U.S. aid as a pragmatic necessity. “No country grows on its own, without outside help,” said Kevin Nehuen, a Milei backer from Patagonia, pointing out that previous Argentine governments also relied on currency swaps—with China, no less—to boost reserves.
The personal chemistry between Trump and Milei was on full display during their White House meeting. Trump praised Milei as “MAGA all the way,” calling him his “favorite president” and predicting that Argentina was “on the verge of major economic success.” The two leaders have long cultivated a close relationship, with Milei being one of only two world leaders onstage at Trump’s inauguration.
In a moment that underscored the day’s symbolic significance, Trump also posthumously awarded the Presidential Medal of Freedom to the late Charlie Kirk, a prominent conservative activist, as reported by NBC News. The ceremony, though overshadowed by the financial and political drama, was a reminder of the domestic political stakes at play for Trump as much as for Milei.
As Argentina’s midterm elections approach, the future of the U.S.-Argentina relationship—and the fate of the $20 billion bailout—hangs in the balance. With both leaders betting big on each other’s success, the coming weeks promise to be as unpredictable as they are consequential.