At a meeting in the White House, Trump backs Milei but makes US aid conditional on his re-election

Argentine President Javier Milei, a libertarian leader known for his austerity policies, arrived on Tuesday at the White House for his first official meeting with President Donald Trump, amid a political and economic crisis that threatens to destabilize his government. 

The meeting, marked by gestures of camaraderie and mutual praise, coincides with the implementation of a $20 billion financial lifeline by the United States, aimed at stabilizing the Argentine peso and preserving the South American country's foreign exchange reserves. However, Trump was explicit in linking the continuation of that support to the outcome of October's election in Argentina: "If he loses, we are not going to be generous with Argentina. If he doesn't win, we're gone," he said in front of Milei in the Oval Office.

Milei, whose administration faces growing domestic challenges, did not skimp on praise for Trump in the hours leading up to the meeting. In a message published on social media on Monday, the Argentine president celebrated Trump's role in the agreement on the war in Gaza, after two years of devastating conflict between Israel and Hamas. Trump reinforced his support for Milei with a message on Truth Social: "Javier Milei has my Complete and Total Endorsement — He will not let you down. Make Argentina great again!"

A warm reception

The reception at the White House was warm from the start. Trump greeted Milei on Tuesday afternoon, and the two posed for photographs with thumbs up, in a gesture symbolizing the affinity between the two leaders. Asked by a reporter about his message to Argentina, Trump replied, "We love them. We will be there for them," and described Milei as a "very great leader."

On its X account, the White House posted a video of the meeting between the two leaders, and noted:

"It's a great honor to have the leader of Argentina... he's MAGA all the way, he's 'Make Argentina Great Again'.... I think he really is on the verge of tremendous economic success."

The situation in Argentina

The setback, in a Congress dominated by the opposition, generated a crisis of confidence: voters in Buenos Aires province expressed frustration over the economic contraction and growing corruption scandals surrounding Argentina's leader.

Investors reacted by selling Argentine bonds and dumping pesos, which accelerated the loss of the Argentine Treasury's dollar reserves. The government intervened to defend the currency within the exchange rate band established in the recent $20 billion agreement with the International Monetary Fund (IMF).

However, with the peso in free fall, Milei turned directly to Trump during a September meeting in New York on the sidelines of the UN General Assembly. The conversation, peppered with handshakes and praise, resulted in a public promise by U.S. Treasury Secretary Scott Bessent to extend the bailout.

Markets responded with relief

The markets responded with immediate relief. Days later, Argentine Economy Minister Luis Caputo negotiated the final details in Washington. Last Thursday, Bessent announced that the U.S. would allow Argentina to swap up to $20 billion in pesos for an equivalent dollar amount, signaling the success of Milei's program.