Javier Milei, the new President of Argentina, is charting a radical political course. His administration, as well as his ally in the U.S. capital, former U.S. President Donald Trump, faces skyrocketing approval ratings, imminent bankruptcy, and public protests. On a visit to the White House last month, Milei was energetically pleading for Trump’s support. He hoped to shore up his government’s stability and bring investors’ dollars to Argentina, which is reeling from a historic liquidity crisis.
As his country continues to battle the prospect of yet another financial collapse, Milei’s approval ratings have tanked. Argentina’s economic situation has perhaps never been worse. In turn, Milei has publicly called for Trump’s political and economic support. While many topics were discussed during this call and there is much to do, chief among them was the promise of U.S. financial assistance.
Trump responded positively to Milei’s request, reaffirming his administration’s commitment to providing substantial economic support. U.S. Treasury Secretary Scott Bessent announced the closing yesterday of a $20 billion such deal. This funding is intended to help stabilize Argentina’s rather precarious economy. Trump has personally ensured people know he’s a believer in Milei’s vision for the country.
“He’s Maga all the way, it’s ‘Make Argentina Great Again’” – Donald Trump
As welcome as this support is, Trump has given a very clear warning shot on the imminent legislative elections in Argentina. He warned that if Milei doesn’t win, economic support will be cut drastically.
“If he loses, we are not going to be generous with [Argentina]” – Donald Trump
Milei is under enormous tension as he prepares for a first round election on October 22. This election will determine if his minority party can make gains and expand its small representation in the overwhelmingly dominant legislature. The results of these elections will play a pivotal role in Milei’s ability to implement stringent cost-cutting reforms necessary to stabilize the economy.
Prior to Milei’s term, Argentina had been fostering closer ties with China, a shift that contrasts with Trump’s pro-U.S. stance. This transformation of geopolitical alliances raises some critical issues. Are those prospects for Argentina’s foreign policy doomed if Milei can’t keep the leadership position he’s established?
Now Milei’s government is under increasing pressure as it tries to walk a thin line between the anger of domestic voters and the demands of international applause. His administration’s attempts to prevent a fiscal calamity depend almost entirely on the result of this fall’s elections.
So far, Trump’s administration has promised $20 billion in aid, but this promise is far from unconditional. For now, Milei is in the midst of campaigning for support of his reforms. This potential cut in U.S. aid can determine how voters view him—and more importantly, how they vote—in these upcoming elections.
The political situation in Argentina is still quite volatile, as discontent towards Milei’s economic management grows amongst Argentinians. With disapproval ratings increasing, his capacity to rally support from the public and international partners will be put to the test.