U.S. President Donald Trump welcomed Javier Milei and his Argentine delegation to the White House on Tuesday to strengthen the strategic alliance between the two countries and made key decisions regarding the economy and bilateral trade.
The meeting, initially planned as bilateral, was ultimately held with the economic and political teams of both governments, in the presence of the press. Milei was accompanied by her sister Karina, Ministers Luis Caputo and Patricia Bullrich, Foreign Minister Gerardo Werthein, Ambassador Alec Oxenford, and Central Bank Governor Santiago Bausilli. Trump was also present at the meeting, including Treasury Secretary Scott Bessent.
After the meeting, Trump warned that, despite strong support for Milei, US economic aid could be withdrawn if La Libertad Avanza does not win the election:"We are confident that the president and his coalition will do well in the election. But this aid is subject to strong economic policies. A return to the failed policies of Peronism will cause the United States to reconsider the situation." The statement caused an immediate drop in Argentine bonds and stocks on Wall Street.
Among the economic definitions that emerged from the summit, the following stand out:
Currency Swap: Scott Bessent clarified that US support does not replace the currency swap agreement with China. “US assistance is not contingent on the closing of the swap with China. Any information to that effect is incorrect,” the Treasury Secretary stated.
Dollarization: Although Minister Caputo had ruled out the possibility of dollarizing the Argentine economy, Trump avoided giving a concrete definition on the subject, although he did say: “I like the dollar and anyone who wants to use the dollar as currency will be welcome.”
Free trade agreement: Trump asserted that “it's important to have allies like Argentina” and emphasized that a free trade agreement could be negotiated between the two countries. “We want to help them. That will also help us because they have excellent products and we have good trade,” he said.
Financial support conditional on the elections: While Trump did not provide details on the financial assistance, he emphasized the importance of the outcome of the legislative elections. “We want Milei to succeed. Argentina has a lot of potential and has the right leadership. The elections will be very soon. It's a great election; it will be watched by the whole world because Milei did a great job. Our agreements are subject to who wins the elections because investing with a socialist is very different. If he wins, we will continue to support him, and if not, we will leave.”
The summit reaffirms the strong political and economic ties that Milei's government seeks to consolidate with the United States, in a context where the USD 20 billion swap and the US Treasury's direct intervention in the local foreign exchange market are the focus of market attention.
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