Trump is bailing out Argentina. What happened to ‘America first’?

US President Donald Trump has pledged a $20 billion currency swap to Argentina, but only if its President Javier Milei’s party wins the upcoming midterm elections, highlighting a conditional approach that contrasts with his ‘America First’ rhetoric. On October 14, 2025, President Donald Trump hosted Argentinian President Javier Milei at the White House, where he announced a significant financial support package for Argentina. The $20 billion currency swap is designed to stabilize Argentina’s economy, but Trump made it clear that the aid is contingent on Milei’s political coalition, La Libertad Avanza, performing well in the midterm elections scheduled for October 26. This conditional offer underscores the personal and ideological alliance between the two leaders. Trump explicitly stated that if Milei’s party loses, the United States would not be ‘generous’ with Argentina, emphasizing that the support is tied to Milei’s continued leadership and reform agenda. During the meeting, Trump endorsed Milei, telling him, ‘You’re going to win the election,’ and pledged full support on his social media platform. This move is seen as an attempt to bolster Milei’s declining poll numbers and ensure the survival of his austerity measures. Milei, who took office in December 2023, has implemented drastic economic reforms, including slashing government spending and programs, which have reduced inflation but exacerbated poverty for many Argentinians. His party faces significant challenges in the upcoming elections, following a recent defeat in Buenos Aires province and ongoing scandals, including allegations of bribery involving his sister, Karina Milei. Despite these setbacks, Trump and his officials expressed confidence in Milei’s prospects. The conditional nature of the bailout has sparked criticism and questions about Trump’s ‘America First’ policy, which traditionally prioritizes domestic interests over foreign aid. US Representative Maxine Waters condemned the move, noting that the US government is currently in a shutdown, and accused Trump of prioritizing a foreign bailout over resolving domestic issues. This has led to debates about the consistency of Trump’s foreign policy approach. Treasury Secretary Scott Bessent clarified that the $20 billion is a currency swap, not a traditional bailout, and is predicated on Argentina maintaining robust economic policies. He warned that a return to previous left-wing Peronist policies would cause the US to reconsider its support. The funds are drawn from the Exchange Stabilization Fund, an emergency reserve, highlighting the unusual measures being taken. Milei’s reforms have been controversial, with Congress overriding several of his vetoes to restore funding for universities, pediatric healthcare, and disability benefits. This indicates growing resistance to his agenda within Argentina. Trump, however, defended Milei, blaming the media for negative coverage and urging him to ‘hold strong to his principles.’ Looking ahead, the outcome of Argentina’s midterm elections will determine the future of US support and Milei’s ability to continue his reforms. If La Libertad Avanza wins, the currency swap could provide a much-needed boost to Argentina’s economy. If not, the US may withdraw its offer, potentially leading to further economic instability in Argentina and testing the limits of Trump’s international alliances.