His statements from the White House caused a drop in Argentine stock markets and embarrassment in Washington, just days after the $20 billion support package.
United States support for Argentina depends on the success of President Javier Milley's ruling party in this month's midterm elections, US President Donald Trump said on Tuesday, warning that we will not waste our time if Milley's party does not win.
Trump's statements were made during his meeting with Milley at the White House, a few days after the US agreed to provide a significant economic support package to the country.
He may not win, but I believe he will
"I support this man because his philosophy is right, and he can win," Trump said before a working lunch at the White House with Milley and members of his cabinet."He may not win, but I believe he will win. If he wins, we're with him. If he doesn't, we're done."
Trump's comments unsettled Argentine markets, which had rallied after U.S. Treasury Secretary Scott Besant announced a stimulus package. The centerpiece of the deal is a $20 billion currency swap between the U.S. government and Argentina's central bank — stable dollars for volatile pesos. The country's main stock market reversed gains and fell about 2 percent after Trump's remarks.
Bessant said the package, the full details of which have not yet been announced, is based on the continuation of the economic policies promoted by the Trump administration. A return to Peronist policies would force us to reconsider it, he said.
However, he clarified that the US aid package is not contingent on the cancellation of Argentina's separate currency swap agreement with China. The US aid does not presuppose the termination of the agreement with China, he stressed.
An unusual move for the US
The economic bailout for Argentina is an unusual move for the United States, especially under an administration that typically shuns major international economic interventions. The White House presents the deal as a strategic effort to stabilize a key regional ally. But the initiative has drawn sharp criticism at home.
Many Democrats accuse Trump of pushing for bailouts of foreign economies and investor protections while the US government remains shut down due to a political battle over the budget. American farmers have also expressed displeasure, noting that China has switched to importing soybeans from Argentina this year instead of the US.
Although the details of the deal are still unclear, the package could give Milley the political boost he needs to avert a deeper economic crisis and strengthen his position ahead of elections. The Argentine president suffered a major blow last month when his party lost a crucial provincial election and is now fighting to retain control of Congress.
The American support also highlights the Trump administration's willingness to support political allies who have cultivated close ties with him and the U.S. conservative movement in recent years. Trump has called Milley his favorite president, and the Argentine leader was one of two foreign leaders on stage at Trump's inauguration.
