Argentina Economic Crisis: Trump’s Support for Javier Milei
Argentina’s Risky Economic Experiment
In late 2023, Argentina began a risky experiment. The nation elected an unconventional president to solve a growing crisis. His name was Javier Milei.Argentina Economic Crisis
Milei soon became known as the chainsaw president. His plan was to cut everything—cut jobs, cut subsidies, and cut welfare funds. But two years later, is this experiment unraveling?
Argentina’s Financial Markets in Crisis
Look at the Argentine peso. Last month, it was trading at 1,300 against the dollar. By Monday, it rose to almost 1,480. Basically, the currency lost a lot of its value. This is not good news for any nation, especially for a country sinking in debt.
Simply put, Argentina’s financial markets are collapsing.
Trump Steps In
So, what did President Milei do? He turned to Donald Trump. Reports suggest Trump may help Argentina. He met Milei in New York yesterday and promised political and financial support. But a full bailout? Trump remained non-committal.
Trump said:
“I don’t often do this, but I’m giving a full endorsement to him. He’s doing a fantastic job. We just endorsed him. Argentina can get good debt, and all the things needed to make Argentina great again.”
But will Trump really help Argentina?
Why is Trump Keen on Helping Milei?
This raises two big questions:
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Why is Trump keen on helping Milei?
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And what happened to Argentina’s economic recovery?
Initially, Milei scored some wins. But more recently, he suffered setbacks. His group lost badly in a mid-term election. His sister was tied to a corruption scandal, and some of his spending cuts were reversed.
As a result, markets lost trust in Milei’s ability to deliver. Investors feared he would soon become a sitting duck. That’s why the peso crashed.
Political and Strategic Interests
The mid-term election in October is crucial. If Milei loses, the markets could crash further. Enter Donald Trump. Why is he helping?
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Political Alignment: Both leaders are conservative right-wing figures. Milei has close ties with Trump’s camp. Trump even called him his “favorite president.”
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Strategic Interests: Argentina is one of the biggest countries in South America and is rich in rare earths. China has made inroads there, but Milei is working to reduce Chinese influence. For Trump and America, supporting Milei aligns with national interests.
Possible US Support Measures
Trump’s Treasury Secretary has listed four methods of support:
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The US government could buy Argentine bonds.
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Direct loans to Argentina’s Central Bank.
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A $20 billion currency swap.
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Buying up Argentina’s government debt.
All these measures are on the table. But Trump is avoiding the word “bailout. Argentina Economic Crisis
Challenges Ahead
The US itself is facing a cost-of-living crisis. Bailing out a foreign country won’t play well politically. Democrats are already opposing the idea.
A senator remarked:
“At a time when Americans are struggling to afford groceries, it is troubling that the president intends to use emergency funds to inflate the value of a foreign currency.”
Argentina’s Debt Burden
Still, Trump seems keen. Argentina has $42 billion in debt and must repay around $10 billion in the first half of 2026. The IMF and World Bank have offered help, but with strict conditions.
Milei cannot let the peso collapse further. When the currency crashed, his government had to defend it, selling $1 billion in foreign reserves. This is money Argentina needs to repay loans—not prop up its currency.
That is why Trump’s role is key. With US support, Milei can continue his “chainsaw economics.” Washington seems ready to help Argentina. The only question is—how much help will actually come? Argentina Economic Crisis
Conclusion
Argentina’s risky economic experiment under President Milei has worsened the Argentina Economic Crisis, with the peso collapsing and investor confidence falling. While Trump’s potential support brings some hope, the future remains uncertain. How Milei handles his “chainsaw” policies will determine whether Argentina recovers or the Argentina Economic Crisis deepens further.
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Author: Chitta Majhi, Blogger covering trending global news.
