Trump Warns of Halting Aid to Argentina if Milei Loses Election

Washington, D.C. — United States President Donald Trump has warned that his administration could cut financial aid to Argentina if his libertarian ally, President Javier Milei, fails to win the country’s crucial legislative elections later this month.

“If he loses, we are not going to be generous with Argentina,” Trump declared during Milei’s visit to the White House on Tuesday, where the Argentine leader sought both political and economic backing from the Republican administration.

Trump reaffirmed his personal support for Milei, saying:

“I’m with this man because his philosophy is correct. He may win and he may not — I think he’s going to win. If he wins, we are staying with him, and if he doesn’t win, we are gone.”

Trump’s administration recently announced a US$20 billion financial support package aimed at stabilising Argentina’s markets and strengthening Milei’s government.

However, this commitment has failed to calm investors or improve Milei’s polling numbers ahead of the 26 October midterm elections.

The outcome will determine whether Milei can push through his radical economic reforms or face legislative gridlock during the remaining two years of his presidency.

During their meeting, Trump praised Milei as a “great leader” and announced his “full endorsement” of the Argentine president’s campaign.

“He’s MAGA all the way — it’s ‘Make Argentina Great Again,’” Trump said, linking Milei’s movement to his own “Make America Great Again” slogan.

Still, critics have questioned how a massive bailout for Argentina fits within Trump’s ‘America First’ policy framework.

When pressed by reporters about the benefits for the United States, Trump replied:

“We are helping a great philosophy take over a great country. We want to see it succeed.”

Argentina has been battling “acute illiquidity”, according to US Treasury Secretary Scott Bessent, who last week confirmed that the US Treasury would make available up to US$20 billion to stabilise Argentina’s markets.

“The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” Bessent said.

Following the announcement, Argentine stocks and bonds rallied, and the peso experienced temporary relief, though experts warned the recovery may not last.

This rare instance of direct US intervention in Latin American currency markets highlights Washington’s strategic interest in Milei’s continued leadership — particularly as a counterbalance to China’s growing influence in the region.

During a radio interview on Monday, Milei emphasised that Washington’s intervention reflected a shared ideological alliance.

“The United States saw this attack on Argentina — on the ideas of freedom, on a strategic ally — and that’s why they supported us,” Milei said, adding, “They know we are a true ally.”

Prior to Milei’s presidency, Argentina — a major lithium producer — had been deepening economic and diplomatic ties with China.

Now, Milei’s administration has sought to realign the country’s foreign policy with US and Israeli interests, marking a significant geopolitical shift.

Amid speculation about potential post-election economic changes, Economy Minister Luis Caputo on Sunday ruled out immediate plans to dollarise the Argentine economy or alter the current floating exchange rate band.

“We are focused on stability first,” Caputo said, aiming to reassure markets of policy continuity despite mounting speculation.

Trump’s warning adds a new layer of pressure to Milei’s already fragile administration — one balancing financial desperation, legislative vulnerability, and foreign dependency at a politically decisive moment.

In essence, the upcoming legislative elections will determine not only the future of Milei’s economic reform agenda, but also the longevity of Argentina’s financial lifeline from Washington — a partnership now openly tied to the libertarian leader’s political survival.