President Donald Trump has stated that continued U.S. financial support for Argentina will depend on whether President Javier Milei’s party wins the upcoming midterm elections. Speaking after a meeting with Milei in Washington, Trump said his administration would not “waste time” helping Argentina if Milei’s economic agenda does not remain in place after the elections.
The U.S. recently announced a $20 billion economic aid package to help stabilize Argentina’s struggling economy. Trump described the bailout as a show of confidence in Milei’s pro-market reforms, which aim to control inflation, reduce government spending, and strengthen foreign investment. However, he made it clear that this support could end if Argentina’s political direction changes.
Financial markets reacted quickly to Trump’s remarks. Argentina’s stock index dropped by nearly 2 percent as investors worried about the uncertainty surrounding future U.S. aid. Economists noted that the U.S. package is structured as a currency swap agreement and depends heavily on continued cooperation between both governments.
During the meeting, Milei emphasized his commitment to transforming Argentina’s economy and aligning closely with Washington’s economic policies. Trump praised Milei’s leadership, calling him a “true reformer,” and urged Argentine voters to keep supporting him to ensure economic stability.
The situation highlights how U.S. foreign aid is increasingly influenced by political outcomes. Analysts warn that conditioning financial support on election results could set a precedent for politicized diplomacy, where international backing becomes tied to personal alliances and political loyalty.
For Argentina, the stakes are high. The outcome of the midterm elections will not only shape Milei’s ability to pass reforms but also determine whether the U.S. continues to provide the crucial financial assistance the country needs to stabilize its economy.