Trump 'extorts' Argentinians, links aid to Milei’s midterm success

By Al Mayadeen English
Source: News websites
15 Oct 2025 09:33
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Trump links $20 billion US aid to Argentina’s Milei winning midterms, raising stakes ahead of October 26 vote amid economic and political challenges.

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United States President Donald Trump (L) greets President of Argentina Javier Milei (R) as he arrives at the West Wing of the White House on October 14, 2025, in Washington. (AFP)

United States President Donald Trump has made it clear that a $20 billion US aid package for Argentina is contingent on Argentinian President Javier Milei securing political victories in the upcoming midterm elections, intensifying pressure on the libertarian leader ahead of the October 26 vote.

Speaking at a White House meeting with Milei on Tuesday, Trump emphasized, “If he wins, we’re staying with him. And if he doesn’t win, we’re gone.”

He hailed Milei as a “great leader” and a close ideological ally, declaring that his administration would “fully endorse” the Argentine president. Trump described Milei’s platform as “MAGA all the way” and framed US support as an investment in a philosophy aimed at strengthening Argentina’s economic and political future.

MAGA.
VLLC! pic.twitter.com/JrVqnlbep3
— Javier Milei (@JMilei) October 15, 2025

US awards Milei a lifeline

The US Treasury announced last Thursday that it had intervened to stabilize the Argentine peso and approved a $20 billion swap line, providing Milei’s cash-strapped central bank with access to dollars. The move averted a market crisis that had emerged after Milei’s party suffered a major defeat in Buenos Aires province during local elections last month, which triggered a run on the peso and raised concerns about Milei’s midterm prospects.

“This aid is predicated on robust policies and going back to the failed Peronist policies will cause a U.S. rethink,” Treasury Secretary Scott Bessent said at the meeting, referencing Argentina’s main left-leaning opposition.

Domestic politics and Milei’s midterm challenge

Milei, who took office in December 2023, has pushed through a free-market agenda targeting inflation, fiscal deficits, and economic deregulation. Although his policies have achieved fiscal surplus, a rare occurrence in recent Argentine history, Milei has also pushed many Argentinians into poverty and extreme poverty by abolishing safety nets.

Economic stagnation, stalled wage growth, and a series of corruption scandals involving key advisors have dampened public confidence, particularly in Buenos Aires province, home to nearly 40% of Argentina’s population.

Polls indicate Milei’s party, La Libertad Avanza, may capture a national vote share in the low to high 30s, an improvement over his 34% vote share in Buenos Aires during the local elections, but still leaving his congressional influence uncertain.

US extortion

Peronist leader Jorge Taiana criticized Trump’s intervention, accusing the US president of “extorting the Argentine people” and warning voters not to accept foreign influence in their elections.

¡Presidente Trump basta de extorsionar al pueblo argentino!
A cualquier extorsión se responde con valentía y denunciando a los responsables de la amenaza.
Si la decisión es frenar a Milei o aceptar que el presidente de los EEUU nos diga a quien debemos votar, los argentinos el… pic.twitter.com/zd2vLpyrnx
— Jorge Taiana (@JorgeTaiana) October 14, 2025

Meanwhile, Argentina’s Economy Minister, Luis Caputo, said that US support is tied to the continuation of Milei’s free-market policies rather than strictly to the election results.

Markets reacted cautiously to Trump’s comments. Argentina’s dollar-denominated 2035 bonds fell slightly, though the peso remained up 5% since the US intervention. Economists had warned that, without Washington’s aid, Milei might have been forced to sharply devalue the peso ahead of the midterms.

With midterms approaching, Milei’s presidency faces a high-stakes test. The interplay of domestic economic challenges, declining public support, corruption allegations, and conditional US aid will determine whether Milei's libertarian policies can endure or whether Argentina’s political landscape will shift toward the opposition.