U.S. President Donald Trump welcomes Argentina’s President Javier Milei at the White House in Washington, D.C., U.S., October 14, 2025. REUTERS/Kevin Lamarque
U.S. President Donald Trump welcomes Argentina’s President Javier Milei at the White House in Washington, D.C., U.S., October 14, 2025. REUTERS/Kevin Lamarque
U.S. President Donald Trump welcomes Argentina's President Javier Milei at the White House in Washington, D.C., U.S., October 14, 2025. REUTERS/Jonathan Ernst

By Nandita Bose

WASHINGTON (Reuters) -U.S. support for Argentina hinges on the ruling party of President Javier Milei succeeding in this month's midterm legislative elections, President Donald Trump said on Tuesday, saying "we're not going to waste our time" if Milei's party doesn't win.

Trump's remarks came as he and Milei met at the White House just days after the U.S. agreed to provide a major financial lifeline to the South American nation.

"I'm with this man because his philosophy is correct, and he may win it," Trump said ahead of a White House lunch with Milei and members of Trump's cabinet. "He may not win, but I think he's going to win. And if he wins, we're staying with him. And if he doesn't win, we're gone."

Trump's remark rattled Argentine markets that had been buoyed by the support package recently announced by U.S. Treasury Secretary Scott Bessent, the centerpiece of which is a $20 billion currency swap with Argentina's central bank, exchanging stable U.S. dollars for volatile pesos. Argentina's main stock market reversed earlier gains and was down about 2% following Trump's comments.

Bessent, at Tuesday's meeting, said the package - full details of which have not been announced - is predicated on the continuance of economic policies favored by the Trump administration.

"Going back to Peronist policies would cause a rethink," Bessent said.

Bessent said, however, that the aid package was not dependent on Argentina ending a separate swap line arrangement with China. "American assistance to Argentina is not predicated on ending the swap with China," Bessent said.

The economic lifeline for Argentina marks an unusual move for the U.S., particularly under an administration that has largely eschewed major foreign interventions.

The White House has framed the deal as a strategic effort to stabilize a key regional ally. But it has drawn criticism at home.

Many Democratic lawmakers have accused Trump of prioritizing foreign bailouts and investor protections while the U.S. government remains shut down. American farmers have also voiced frustration, noting that China has shifted soybean purchases from U.S. producers to Argentine growers this year.

While details of the agreement remain unclear, the bailout could offer Milei a much-needed political boost as he works to stave off a deepening economic crisis and shore up his party's support.

He suffered a major setback last month when his party lost a key provincial election and now faces a critical midterm vote later this month.

The assistance also underscores the extent to which the Trump administration is willing to support a political ally who has cultivated strong ties with the president and American conservatives in recent years.

Trump has described Milei as his "favorite president," and the Argentine president was one of two world leaders onstage during Trump's inauguration.

(Reporting by Nandita Bose in Washington; Additional reporting by Andrea Shalal and Leila Miller; Editing by Ross Colvin and Alistair Bell)