Argentina’s Milei to Meet With Trump After US Finalizes $20 Billion Rescue Plan

Ties between Argentina and the United States deepen as the U.S. government finalizes a $20 billion economic rescue plan.

Argentine President Javier Milei speaks during the annual CPAC at the Gaylord National Resort & Convention Center at National Harbor in Oxon Hill, Md., on Feb. 22, 2025. Madalina Vasiliu/The Epoch Times

President Donald Trump will host Argentine President Javier Milei at the White House on Oct. 14, marking their second meeting in a month.

Their meeting at the Oval Office comes as Milei wrestles with market upheaval and braces for midterm elections. Stateside, the Trump administration attempted to stabilize the market ship by extending a financial lifeline to the Milei government.

With bedlam in Buenos Aires markets, has Milei struggled to enact his agenda since ascending to the presidency?

Reforms Come to Buenos Aires

“Afuera [out]!” was the rallying cry of Milei and his La Libertad Avanza—a political coalition of anti-establishment sentiment and libertarian economics—during the election.

Milei pledged to bring his brand of “chainsaw” economics to the Argentine government. After overwhelmingly winning the presidential election—securing an 11-point victory and defeating Sergio Massa—he imposed what he described as shock therapy on the Latin American economy.

Within his first year, he cut the number of ministries in half, eliminated tens of thousands of public sector workers, and launched sweeping tax reforms by eliminating 90 percent of taxes and keeping only the essential ones—income, value-added, and trade-related levies.

He introduced market liberalization measures, including the elimination of price controls and rent control laws, the reduction of regulatory burdens on businesses, and the privatization of state-owned companies.

The president also cut subsidies for various sectors, reduced welfare spending, and froze funding for universities.

While he has yet to implement pension reforms, his administration has vetoed multiple legislative efforts to enhance pension and disability spending. Milei has also said that further pension reform efforts will not be on the agenda until broader labor market issues are addressed.

Ultimately, the lion’s share of Milei’s economic agenda has been introduced, leading to lower inflation, solid economic growth, falling poverty, and a budget surplus.

US Lifeline for Argentina

Despite the economic and fiscal gains Argentina has enjoyed over the past two years, the country has faced market upheaval since early September.

The Buenos Aires provincial election was held on Sept. 7, leading to Milei’s first political defeat at the hands of the left-leaning Peronist coalition Fuerza Patria. Milei acknowledged the results as a “clear defeat” and committed to staying the course by enacting his agenda.

In the aftermath of Milei’s loss at the ballot box, stocks tanked, bond prices fell, and the peso weakened against the U.S. dollar. Investors sent the message that they fear Milei’s grip on power will erode, threatening his reforms.

The Argentine government bolstered steps to stop the bleeding and defend the peso as a cash crunch deepened.

The Trump administration noticed what was happening, prompting officials to intervene.

Treasury Secretary Scott Bessent announced on Oct. 9 that the U.S. government had finalized a $20 billion economic rescue plan for Argentina. The plan features a currency swap line to stabilize the peso.

Following up on an X post that stated that all options were on the table to stabilize Argentina’s financial markets, Bessent confirmed that the United States was following through on its commitment.

“The U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,” he wrote on social media.

Argentine President Javier Milei takes the stage outside the Cabildo during the commemoration of the 214th anniversary of the May Revolution, in Cordoba, Argentina, on May 25, 2024. Leandro Bustamante Gomez/Reuters

“Argentina faces a moment of acute illiquidity. The international community ... is unified behind Argentina and its prudent fiscal strategy, but only the United States can act swiftly. And act we will.”

Bessent also pushed back against claims that the White House was bailing out Milei.

“It’s not a bailout at all,” Bessent said in an Oct. 9 interview with Fox News host Laura Ingraham.

According to the senior administration official, no money is changing hands, and the Treasury Department’s Exchange Stabilization Fund—a special emergency reserve account created in 1934—has never lost funds.

“I was in the investment business, mostly currencies, for 40 years,” he said. “You’re supposed to buy low, sell high. And the Argentine peso is undervalued.”

The peso has weakened by about 30 percent against the U.S. dollar this year.

Midterm Elections

Later this month, Milei will face his first midterm election. Half of the seats in the National Congress—127 in the lower house and 24 in the upper house—are up for grabs.

Predictive markets indicate that Milei’s La Libertad Avanza is gaining momentum as election day approaches and is expected to secure the most seats. The Peronist–Kirchnerist coalition has seen its momentum fade this month.

And this is what the U.S. administration wishes to see.

Bessent, in an interview with Fox Business last month, said U.S. support can serve as a “bridge” for Milei going into the election.

“The plan is, as long as President Milei continues with his strong economic policies, to help him, to bridge him to the election,” Bessent said. “We are not going to let a disequilibrium in the market cause a backup in his substantial economic reforms.”

Argentine voters head to the polls on Oct. 26.