United States President Donald Trump said that he decided to help Argentina with a US$40 billion bailout because the country “is dying” and “fighting to survive.” He added that his administration could potentially buy Argentine beef to bring U.S. prices down.
“Argentina is fighting for its life. Nothing is benefiting Argentina; they’re fighting for their life,” Trump told reporters on board Air Force One on Sunday. He was answering a question about U.S. farmers who feel the deal is benefiting Argentina over them.
“They have no money. They have nothing. They’re fighting so hard to survive,” Trump said.
Trump also explained that he likes Argentine President Javier Milei and painted a grim picture of the country’s economic situation. “He is trying to do the best he can, but don’t make it sound like they’re doing great. They are dying,” he insisted, and added that he would “help them survive in a free world.”
The U.S. government has announced a series of economic measures that were widely seen as an unprecedented bailout to rescue Argentina’s finances just days before its midterm elections. Milei’s administration is facing a fast weakening of the peso in the context of a series of political scandals that are expected to hinder the ruling party’s electoral chances.
The bailout deal includes a US$20 billion currency swap, which was formally signed on Monday. Last Wednesday, U.S. Treasury Secretary Scott Bessent told journalists that the U.S. government was working with private investment funds to create a US$20 billion facility to invest in Argentina’s sovereign debt, which would bring the total to US$40 billion. Bessent’s department also bought pesos in the Argentine foreign exchange market and announced they would grant Argentina a standby credit.
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Milei flew to Washington last week to meet with Trump and ratify the agreement. There, Trump said that he would continue to support Milei as long as his party performed well in the upcoming election. Bessent later softened the message, saying Argentina would simply need to pursue “good policies.”
On Sunday, Trump said that his government could purchase Argentinian beef in an attempt to bring down prices for American consumers.
“We would buy some beef from Argentina. If we do that, that will bring our beef prices down,” he said.
The move could add tension to the U.S. trade war with China and also to China’s relationship with Argentina. Days ago, Bessent said that Milei is “committed to getting China out of Argentina” but later clarified he was referring to “ports, military bases, observation facilities that have been created in Argentina.”
China is Argentina’s top beef importer and its second trade partner after Brazil. Argentina also has an ongoing US$18.5 billion currency swap with China.
