In a move that blurs the line between diplomacy and electioneering, U.S. President Donald Trump has tied a proposed $20 billion currency swap with Argentina to the success of Argentine President Javier Milei’s coalition in the country’s crucial midterm elections later this month.

During a high-profile meeting at the White House on Tuesday, Trump welcomed the fiery libertarian leader and offered what he called a “full endorsement” — but also a clear warning.

The White House visit marked Milei’s latest trip to Washington since taking office in 2023, and it underscored the growing ideological alliance between the two presidents. Trump and Milei — both populist outsiders — share a deep skepticism of global institutions, traditional media, and left-wing politics.

Trump’s proposed $20 billion U.S.–Argentina currency swap would inject much-needed liquidity into Argentina’s fragile economy, where inflation still hovers above 120% and poverty rates remain stubbornly high. But Trump made it clear: the deal depends on Milei’s coalition, La Libertad Avanza, holding power after the October 26 elections.

Bessent later confirmed that the U.S. Treasury’s participation was “predicated on Argentina maintaining free-market, anti-Peronist reforms.” In other words: no return to left-wing economic policies.

For Milei, who swept into office as a self-proclaimed “anarcho-capitalist” promising to dismantle Argentina’s bloated state, the upcoming Argentina midterm elections 2025 are make-or-break.

Though he’s not personally on the ballot, the results will decide whether his coalition can continue to push through sweeping austerity measures — from cutting government ministries to slashing social programs.

But Milei’s grip on power has been slipping. In recent local elections in Buenos Aires province, his La Libertad Avanza coalition lost by 12 points to the left-wing Justicialist Party, signaling a sharp decline in popular support.

At the same time, Milei’s administration has been rocked by scandal: leaked recordings allegedly implicate his sister and key adviser, Karina Milei, in a bribery scheme tied to public contracts. Both have denied wrongdoing, but the controversy has further damaged the government’s credibility.

Congress, meanwhile, has repeatedly overridden Milei’s vetoes — restoring funding for universities, pediatric hospitals, and disability programs that his austerity agenda sought to cut. It’s a sign that Argentina’s political establishment is pushing back.

For Trump, backing Milei serves multiple goals: strengthening his “America First” foreign policy in Latin America, advancing a global right-wing economic agenda, and building alliances with like-minded populist leaders.

In his Truth Social post after the meeting, Trump called Milei “a hero for freedom” and vowed to “support his great reforms.” He even joked during the White House press event:

The remark drew polite laughter but underscored Trump’s trademark mix of bravado and provocation — and his comfort turning diplomacy into theater.

Yet Trump’s foreign policy gamble has its critics. Democrats on Capitol Hill, including Representative Maxine Waters, accused him of “using U.S. taxpayer resources to influence a foreign election” while the federal government remains partially shut down.

“Instead of reopening the government,” Waters said, “Trump is prioritizing a foreign bailout to prop up an ideological ally.”

The conditional nature of Trump’s Argentina aid raises serious questions for both countries. Economists warn that tying a massive currency swap to an election could undermine confidence in Argentina’s central bank and politicize U.S. foreign aid.

Still, for Milei, Trump’s backing could offer a lifeline. With his approval ratings faltering, the image of standing shoulder-to-shoulder with the U.S. president may rally conservative voters who see Milei as a defender of market freedom against what Trump called “a radical-left sick culture.”

The comment mirrored Trump’s own battles with the media — and revealed the deep personal identification he feels with Milei’s fight to reform Argentina in the face of elite resistance.

The Trump–Milei partnership signals a new phase in U.S.–Latin America relations, one defined less by traditional diplomacy and more by ideological alignment. Instead of quiet support through institutions like the IMF, Trump prefers bilateral deals that reward leaders who embrace free markets and nationalism.

Whether that strategy stabilizes Argentina — or entangles the U.S. in yet another regional political struggle — remains to be seen. But the message from Washington is clear:

Milei wins, Argentina gets help. Milei loses, the money stops.

For Argentina’s voters, that makes the October 26 election not just a referendum on Milei — but a test of how far U.S. influence now reaches into Latin America’s political future.

Morning Brew makes business news way more enjoyable—and way easier to understand. The free newsletter breaks down the latest in business, tech, and finance with smart insights, bold takes, and a tone that actually makes you want to keep reading.

No jargon, no drawn-out analysis, no snooze-fests. Just the stuff you need to know, delivered with a little personality.

Over 4 million people start their day with Morning Brew, and once you try it, you’ll see why.

Plus, it takes just 15 seconds to subscribe—so why not give it a shot?

Check it out