Argentina’s President Javier Milei crossed paths with Donald Trump at the United Nations this week, underscoring a relationship that now goes far beyond political admiration.
Behind the scenes, the Trump administration is weighing a $20 billion financial rescue for Buenos Aires — a deal designed to stabilize the peso and calm jittery markets. Treasury Secretary Scott Bessent confirmed Wednesday that Washington is exploring a swap line and potential debt purchases, calling it a “bridge to the election.”
On paper, such a move looks at odds with Trump’s “America First” rhetoric. But viewed through the lens of global ideological alliances, it falls neatly into place: a White House eager to support leaders who mirror Trump’s populist-nationalist outlook.
Milei, a chainsaw-wielding libertarian who rose to power in 2023, has promised to slash government excess and reboot Argentina’s faltering economy. His drastic measures have delivered short-term wins — inflation has dropped from dizzying highs — but they’ve also unleashed pain. Businesses are shuttering, jobs are vanishing, and households are feeling the squeeze. Meanwhile, corruption scandals, including accusations tied to Milei and his inner circle, have further rattled confidence.
Markets spiraled after Milei’s party suffered heavy losses in local elections, raising fears that his grip on power is weakening ahead of critical congressional contests. Argentina’s central bank burned through more than $1 billion in reserves trying to defend the peso, but relief only arrived once talk of U.S. aid began circulating.
For Trump, the decision carries more than economic weight. At the UN, he threw his full endorsement behind Milei, praising him as a bulwark against global decline. Milei returned the favor, lauding Trump as the man who “saved the world” with his policies.
Analysts say the strategy has little to do with traditional U.S. interests. “This is about backing ideological allies,” said international relations expert Nate Schenkkan, noting similarities to U.S. support for Hungary’s Viktor Orbán and Brazil’s Jair Bolsonaro.
Still, the gamble is risky. If Milei can’t regain political momentum, Washington may find itself tied to a sinking partner — and facing calls for an even larger bailout down the line. As one market watcher put it: “Once you step in, you own the crisis.”