President Donald Trump hosted Argentine President Javier Milei at the White House on Oct. 14, days after the administration announced a $20 billion bailout for his country.

Trump has described Milei as his "favorite president," and the eclectic leader has drawn comparisons to Trump. Milei has repeatedly wielded a chainsaw on stage to promote slashing spending, but his agenda, which also includes deregulation and free-market reform, has led to a volatile peso currency and seen investors aggressively dump Argentine stocks and bonds.

Voters will deliver their verdict on Milei's party since he took office in December 2023 at the Argentine midterm elections for legislators later this month. Trump said support for the country relies on his success.

"We think he's going to win. He should win," Trump said at a bilateral lunch with Milei and Cabinet members at the White House. "And if he does win, we're going to be very helpful. If he doesn't win, we're not going to waste our time."

The comment rattled Argentina's markets, according to Reuters.

Why is Trump bailing out Argentina?

Argentina is in a deepening economic crisis with a volatile currency (the Argentine Peso). According to a blog published by the Council on Foreign Affairs, the ins and outs of the crisis are complicated, but undergirding it all is the fact that the country is running out of hard currency.

Trump denied that money was politically motivated when a reporter asked on Oct. 14, instead saying, "it's really meant to help a good financial philosophy," and "we can help our neighbors."

The Trump administration has also argued the financial crisis in the region could affect other countries in the region, according to CNN.

U.S. Treasury Secretary Scott Bessent has said that the United States' economic lifeline for Milei's country will take the form of a currency swap with Argentina's central bank. That's a move that amounts to effectively exchanging stable U.S. dollars with volatile pesos.

Bessent on Fox News' "The Ingraham Angle" last week denied that it was a bailout, according to Reuters. (However, the CFR article said it meets the standard qualifications to be considered a bailout.) Reuters reported he said the assistance was strategic for the U.S. for its openness to allow U.S. companies to develop rare earths and uranium resources and Milei's promise to get "China out of Argentina."

Further details about the arrangement remain unclear.

Reactions to the Argentina bailout

The decision to give Argentina a bailout has angered some American farmers who have expressed concern that Trump's tariffs on China have caused Beijing to shift purchases of soybeans to countries such as Argentina.

"Why would USA help bail out Argentina while they take American soybean producers' biggest market???" Republican Senator Chuck Grassley of Iowa, a key soybean producer, wrote on social media last month.

Democratic lawmakers have also criticized Trump for the move, accusing him of prioritizing foreign bailouts and protecting investors as the country has eclipsed two weeks in a government shutdown, according to Reuters.

Who is Argentina's President Javier Milei?

Milei is a trained economist who believes that institutions of state ultimately hamper many forms of freedom and that true financial success can only be achieved through private markets and stateless societies. He was one of only a few world leaders who attended Trump's inauguration, highlighting their apparent close bond.

"You are my favorite president. The end," Trump said in a call to Milei when he was U.S.-president elect.

Milei has since continued to be one of Trump's closest international allies, apparently seeing eye to eye with him on a range of issues from state spending cuts to attacks on "woke leftists."

Milei is known for his unkempt sideburns, demonic facial expressions and commitment to "anarcho-capitalism." For these reasons, and others, his domestic critics have long dubbed him "El Loco" (the madman).

When running for office, Milei said he was ready to attack the system with a chainsaw. This is something he symbolically proved on the campaign trail by repeatedly brandishing one in front of supporters.

He also claimed he was considering "blowing up" Argentina's central bank by ditching the local peso currency in favor of the U.S. dollar. That's something he appears to have backed away from.

In various interviews, Milei has said he receives his best advice from Murray, Milton, Robert and Lucas. Murray, Milton, Robert and Lucas are four mastiffs − his dogs − who he refers to as his children.

Earlier this month, Milei took to the stage in Buenos Aires for an event that appeared to be part book launch, part rock concert and part political rally. Milei's book, "The Construction of the Miracle," compiles his speeches and social media posts going back several years. It's 573 pages. On stage in front of an estimated 15,000 people, the former frontman in a Rolling Stones tribute band sang a nine-track set of mostly 1980s rock anthems.

“I’m human,” he told the packed stadium at one point. "It might not seem like it, but I am."

Kinsey Crowley is the Trump Connect reporter for the USA TODAY Network. Reach her at kcrowley@gannett.com. Follow her on X and TikTok @kinseycrowley or Bluesky at @kinseycrowley.bsky.social.

This article originally appeared on USA TODAY: Why is Trump bailing out Argentina? What we know after White House visit with 'El Loco'

Reporting by Kinsey Crowley and Kim Hjelmgaard, USA TODAY / USA TODAY

USA TODAY Network via Reuters Connect