Trump Welcomes Argentina’s Milei as US Extends $20 Billion Lifeline/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ In a highly visible show of support, President Trump greeted Argentina’s libertarian leader Javier Milei at the White House as the U.S. rolled out a $20 billion currency swap lifeline to assist Argentina’s failing peso. Milei praised Trump as a champion of freedom while seeking tariff relief and backing for his shaky economic agenda. Critics question how and whether Argentina will repay the aid, and what U.S. strategic interests lie behind the move.
US–Argentina Alliance Quick Looks
- Trump meets Milei in Washington after U.S. offers $20B currency swap
- Milei lavishes praise on Trump, calling him a “dear friend”
- Swap aims to stabilize Argentina’s peso and shore up foreign reserves
- Milei seeks U.S. tariff exemptions for Argentine goods
- Swap deal complements existing IMF funding to Argentina
- Republicans defend U.S. intervention despite domestic shutdown
- Milei’s party lost local elections, sparking currency panic
- Argentina’s rescue seen as short‑term move before October midterms
- OpenAI “Stargate” AI project expected to feature in talks
- Analysts worry the swap may not solve Argentina’s deeper crisis
Deep Look: Trump Welcomes Milei as US Commits $20B to Rescue Argentina
WASHINGTON (AP) — In a dramatic gesture of political alignment and economic intervention, Argentina’s libertarian President Javier Milei arrived at the White House Tuesday and received a warm reception from President Donald Trump. The meeting came in tandem with a newly approved $20 billion currency swap from the United States aimed at stabilizing Argentina’s collapsing peso and replenishing its dwindling foreign reserves.
Milei has long publicly aligned himself with U.S. conservative causes, proclaiming Trump a global defender of freedom. From radical cuts to public spending to aggressive rhetoric against left-leaning movements, the Argentine leader has cultivated admiration among U.S. conservatives. On Monday, he posted on social media his praise of Trump’s recent Gaza-focused ceasefire efforts and reaffirmed their ideological solidarity.
“It is an honor to consider you not only an ally in the defense of those values, but also a dear friend and an example of leadership that inspires all those who believe in freedom,” Milei wrote.
A Lifeline at a Critical Moment
Argentina is in the throes of a severe economic crisis. After suffering a local election defeat and facing weakened support in Congress, Milei’s administration saw panic among investors, triggering a rapid selloff of Argentine bonds and heavy peso depreciation.
To counter the collapse, Argentina drew down precious dollar reserves to support its exchange band system and maintain its currency peg agreed under the IMF package. But the reserves proved insufficient. When the peso continued to tumble, Milei turned to Trump in New York, during the U.N. General Assembly, for help.
That intervention yielded results: U.S. Treasury Secretary Scott Bessent pledged a $20B swap mechanism, allowing Argentina to trade pesos for dollars to stabilize the currency and shore up reserves. Bessent described the operation as a matter of “systemic importance.” The U.S. Treasury also purchased an unspecified amount of pesos directly.
Political Timing & Strategic Goals
This move comes as Argentina approaches midterm elections on October 26, and the swap is widely viewed as a lifeline to carry it through the vote. The alternate—letting the peso collapse—would almost certainly fuel inflation and erode public trust in Milei’s free-market reform agenda.
Analysts see the rescue as essential not just for economics but for political survival. One analyst, Marcelo J. García, described Milei’s trip to Washington as “a moment of desperation” meant to inject confidence before the electorate.
Milei’s overture extends beyond monetary intervention. Among his goals is pushing for U.S. tariff reductions or exemptions for Argentine exports. He also aims to explore cooperation on the Stargate AI project, a partnership among OpenAI, Oracle, and SoftBank intended to build regional AI infrastructure—a project Trump has championed.
Questions of Accountability & Strategy
Critics have been quick to question the logic of rescuing a country with a history of defaults. Argentina is already deeply indebted to the IMF—this new swap comes on top of existing loans. The question now: how and when will Argentina repay the U.S.?
Former Treasury official Brad Setser expressed caution:
“The U.S. should be concerned that Argentina has had to return for $20B so quickly after getting $14B from the IMF,” he said, warning that the latest move might only be a stopgap, not a cure.
Another worry: Milei’s government already failed to meet IMF targets for rebuilding foreign reserves, raising doubts about long-term sustainability.
Milei was reticent when reporters pressed him about specific conditions tied to the U.S. swap. A two-hour meeting with Trump followed by a working lunch was scheduled; details remain unclear. Democrats and critics have called the move taxpayer subsidizing of a foreign country with little clarity on oversight or repayment.
Looking Ahead
- The Stargate AI initiative could emerge as a symbol of deeper U.S.–Argentina cooperation
- Tariff deals and export support may be negotiated during the White House visit
- Argentina must stabilize its currency and meet IMF obligations to maintain credibility
- Political risk looms: early bailout may not prevent further shocks post-midterms
- U.S. strategy is under scrutiny: critics warn of favoritism and domestic optics amid U.S. shutdown
The two leaders are holding a working lunch in the Cabinet Room at the White House.
“He’s MAGA all the way,” Trump said of the Argentine leader. It usually refers to Trump’s campaign slogan, “Make America Great Again,” but in this instance, Trump was also using it to say “Make Argentina Great Again.”
Milei, speaking in Spanish, said he was “very honored, especially in this moment when we are giving thanks for Trump’s great leadership.”
“We can follow a peaceful route and make Argentina a strong example for freedom and prosperity,” Milei said.
Trump confirms another US strike against boat in Caribbean
He said in a post on social media that six people were killed in the strike on the vessel suspected of carrying drugs off the waters of Venezuela. No U.S. forces were harmed.
It’s the fifth deadly strike in the Caribbean as the Trump administration has asserted that it is treating alleged drug traffickers as unlawful combatants who must be met with military force.
Frustration with the administration has been growing on Capitol Hill among members of both major political parties. Some Republicans are seeking more information from the White House on the legal justification and details of the strikes. Democrats contend the strikes violate U.S. and international law.
Trump takes note of slow return of dead hostages to Israel
“ALL TWENTY HOSTAGES ARE BACK AND FEELING AS GOOD AS CAN BE EXPECTED. A big burden has been lifted, but the job IS NOT DONE,” Trump wrote in a posting on his Truth Social platform. “THE DEAD HAVE NOT BEEN RETURNED, AS PROMISED! Phase Two begins right NOW!!”
He made no mention in his post of Israel announcing earlier Tuesday that it would halve the flow of aid into the territory as a result of the slow return of the dead.
Trump tells Hamas to disarm and return dead hostages
Trump says he wants dead hostages held in Gaza back and warns Hamas if “they don’t disarm, we will disarm them.”
The U.S. president made the comment while speaking at the White House during Argentinian President Javier Milei’s visit.
It comes after an Israeli military agency declared a “violation” of the truce agreement that it would respond to by halving the number of trucks allowed to bring humanitarian aid into the devastated territory.
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