Trump Threatens to Cut Argentina Aid if Milei Loses Midterm Elections
By Innovation Times Foreign Affairs Desk
October 15, 2025 | Washington, D.C.
U.S. President Donald Trump has warned that financial aid to Argentina could be withdrawn if his ally, President Javier Milei, fails to secure victory in crucial legislative elections later this month.
“If he loses, we are not going to be generous with Argentina,” Trump said during a joint appearance at the White House, where Milei met the U.S. leader to seek political and economic support. “I’m with this man because his philosophy is correct. And he may win and he may not win, I think he’s going to win. And if he wins we are staying with him, and if he doesn’t win we are gone.”
The Trump administration has pledged $20 billion in financial support to help stabilize Argentina’s faltering economy. However, the commitment has done little to calm market fears or improve Milei’s polling numbers ahead of the October 26 midterm elections.
The outcome will determine whether Milei’s minority party can push through austerity measures and structural reforms or whether his presidency will face a legislative stalemate for the remainder of his term.
Trump hailed Milei as a “great leader” and said he would fully endorse his ideological ally, calling him “MAGA all the way, Make Argentina Great Again.”
Argentina is battling runaway inflation, shrinking reserves, and growing social unrest, while investors remain wary of the country’s long-term financial stability. In recent weeks, Argentina has spent over $1 billion defending the peso, a move many economists describe as unsustainable.
U.S. Treasury Secretary Scott Bessent last week announced a $20 billion emergency bailout, describing Argentina’s situation as “a moment of acute illiquidity.” The move temporarily boosted Argentine bonds and stocks but underscored Washington’s growing influence in South America’s financial affairs.
The bailout also highlighted the United States’ strategic interest in Argentina’s vast lithium resources as Washington seeks to limit China’s growing dominance in the region’s mining sector.
Trump has faced criticism for financing a foreign bailout while promoting his “America First” agenda. When asked by reporters what the U.S. gains from the deal, he replied, “We are helping a great philosophy take over a great country. We want to see it succeed.”
Analysts say Trump’s vocal support reflects an ideological alignment with Milei’s libertarian economic views and a shared anti-establishment posture.
During the same press briefing, Trump also threatened to impose tariffs on Spain, accusing Prime Minister Pedro Sánchez of failing to meet NATO’s defense spending target of 5 percent.
“I’m very unhappy with Spain,” Trump told reporters. “They’re the only country that didn’t raise their number up to 5%. I was thinking of giving them trade punishment through tariffs because of what they did, and I think I may do that.”
Spain has argued that its contributions to NATO missions, including deployments in Latvia, Slovakia, Romania, Bulgaria, and Turkey, compensate for its lower defense spending of 2.1 percent.
For Milei, the upcoming midterms could define his presidency. A win would strengthen his mandate to push through market reforms and austerity programs, while a loss could leave Argentina politically gridlocked and economically vulnerable.
For Washington, Milei’s success is seen as a test of Trump’s influence in Latin America, where populist leaders have reemerged as key partners in shaping regional policy and countering China’s influence.
