US President Donald Trump hailed embattled Argentine counterpart Javier Milei as a “great leader” Tuesday, as the South American firebrand sought a show of economic and political support from a powerful friend.
Trump’s administration has already promised $20 billion to prop up Argentina’s struggling economy but his backing has failed to calm the markets — or help Milei’s polling ahead of crunch elections.
“We love them. They have a great leader,” Trump said when a reporter asked for his message to the people of Argentina as he shook hands with Milei outside the West Wing.
Both then gave the thumbs-up sign for the cameras before heading inside for lunch.
With Argentina struggling to stave off yet another financial crisis and Milei’s disapproval ratings rising, the chainsaw-wielding libertarian has come to right-wing ally Trump for help.
Trump has repeatedly voiced political support for Milei, while backing it up with a promise of huge economic aid.
But Trump himself faces questions about how a bailout for Buenos Aires tallies with the “America First” policy that has seen Washington slash foreign aid for most countries.
Meanwhile the markets remain spooked by Argentina, and Milei’s situation ahead of the October 26 elections has not improved.
The results of the elections will dictate whether Milei can pass tough cost-cutting reforms or will face a legislative brick wall for the next two years of his term.
About half the seats in the Chamber of Deputies are up for grabs, and a third of those in the Senate.
In recent weeks, highly indebted Argentina has had to spend more than a billion US dollars to defend the peso, a strategy most economists believe is unsustainable.
– ‘Acute illiquidity’ –
That prompted Milei’s allies in Washington to step in with a financial bailout.
“Argentina faces a moment of acute illiquidity,” said US Treasury Scott Bessent, announcing a deal that would give Argentina access to US$20 billion.
“The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”
The announcement sparked a rally in Argentine bonds and stocks and helped ease pressure on the peso.
It also marked a rare instance of direct US intervention in Latin American currency markets, underscoring Washington’s strategic interest in Milei’s success.
“The United States saw this attack on Argentina, on the ideas of freedom, on a strategic ally — and that’s why they supported us,” Milei said in a radio interview Monday.
“They know we are a true ally,” Milei said, referring to Argentina’s alignment with US and Israeli interests.
During a recent meeting, Trump said that Milei was doing a “fantastic job.”
“He, like us, inherited a mess, and what he’s done to fix it is good,” Trump said during a meeting on the sidelines of the United Nations General Assembly. “We’re backing him 100 percent”.
In Argentina, there has been fevered speculation about what Trump might want from Milei in return for his support.
Before Milei took power, Argentina — a major lithium producer — had been deepening ties with China.
The Argentine president’s office said the leaders would discuss “multiple topics.”
On Sunday, Economy Minister Luis Caputo ruled out immediate plans to dollarize the economy or alter the floating exchange rate band, amid speculation of post-election changes.
“The United States is willing to keep buying pesos,” he said.
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