Trump hosts Milei to seal U.S. financial aid package for Argentina

Tuesday 14 October 2025 - 08:00

By: Sahili Aya

Trump hosts Milei to seal U.S. financial aid package for Argentina

Argentine President Javier Milei is set to be received Tuesday at the White House by his ideological ally Donald Trump, to finalize the American financial assistance announced a few days ago — a much-needed boost for Argentina’s fragile economy and for Milei himself, who faces key midterm elections in less than two weeks.

Last Thursday, the U.S. Treasury Department unveiled a $20 billion currency swap agreement and a direct intervention in foreign exchange markets to purchase and support the Argentine peso, relieving pressure on the country’s central bank reserves. The announcement, preceded by a pledge from the Treasury to do “whatever is necessary,” immediately strengthened the Argentine currency, which rose more than 8% in four days, from 1,490 to 1,370 pesos per U.S. dollar.

According to the Argentine presidency, the visit will include a meeting and a working lunch between Milei and Trump, though no official announcements have yet been confirmed. Speaking on Monday, Milei suggested that “if certain agreements are finalized, they will be announced; otherwise, they will come later.”

The American support arrives at a critical moment for Milei, as the October 26 legislative elections will determine his parliamentary strength and his ability to govern for the remaining two years of his presidency. The uncertainty surrounding the vote — and Milei’s commitment to his austerity plan — has exposed Argentina, Latin America’s third-largest economy, to renewed financial turbulence.

Economist and former Central Bank president Martín Redrado described the U.S. aid as “a new financial bridge,” following the IMF’s $20 billion loan in April, offering short-term stability ahead of the elections. However, he warned that “Argentina cannot continue moving from one bridge to another,” urging Milei to present a legislative programaddressing production and employment challenges in a country where informal labor exceeds 40%.

Beyond shared ideological ties, Argentine media are debating what U.S. expectations or concessions might accompany this aid. Analysts speculate about privileged access for American investors to Argentina’s mineral resources — such as lithium and uranium — or a potential distancing from China, Argentina’s second-largest trading partner after Brazil. Milei has denied that Washington demanded the termination of Argentina’s currency-swap deal with China, renewed in 2024.