U.S. President Donald Trump has described Argentina as a nation “fighting for its life” praising President Javier Milei’s austerity drive but warning that continued U.S. support will depend on the libertarian leader’s political survival.

The remarks came after a bilateral meeting at the White House on October 14, 2025, as Washington pledged emergency financial backing to stabilize Argentina’s fragile economy.

Trump’s Remarks on Argentina’s Economic Turmoil

In comments that underscored both alarm and admiration, Trump said Argentina was on the brink of collapse but credited Milei for pushing through painful reforms.

“Argentina is dying. They are fighting for their life. They have no money, they have no anything. Milei is trying his best but they are dying” Trump said.

He added that Milei had “done an incredible job” despite “some pain” and warned that American generosity would be conditional.

“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 told reporters.

“If he loses, we are not going to be generous with Argentina.”

The president linked future aid to Milei’s performance in Argentina’s October 26 midterm elections, saying Washington would not “waste our time” if Milei’s party failed to secure parliamentary strength.

Details of U.S. Financial Support

The United States has agreed to a $20 billion currency swap arrangement with Argentina’s central bank to boost dollar reserves and curb inflation. The deal, finalized days before the White House meeting, allows Buenos Aires to exchange pesos for U.S. dollars in an effort to shore up confidence and avert default.

Treasury Secretary Scott Bessent said discussions were underway to expand the package to as much as $40 billion by incorporating private sector loans.

U.S. officials described the initiative as part of a strategy to “reward reform and resilience” while countering the growing economic footprint of China in Latin America.

Trump emphasized that continued assistance would depend on Milei’s “commitment to free markets and responsible governance,” echoing earlier White House statements portraying the Argentine leader as a partner in resisting socialism.

Domestic and International Reactions

In Buenos Aires, Milei thanked Trump for his support, attributing Argentina’s liquidity crisis to entrenched political opposition and calling the agreement “a bridge to stability.”

He said U.S. cooperation could “turn Argentina from despair to prosperity.”

However, the politically conditioned aid has drawn criticism at home and abroad.

Economists warned that linking financial rescue to election outcomes risks undermining Argentina’s sovereignty. Market reaction was cautious: local stocks fell following Trump’s remarks, as investors feared that Washington’s backing could evaporate if Milei’s party underperforms.

The plan also sparked debate in Washington, where some lawmakers questioned whether U.S. reserves should be used to finance politically contingent bailouts. Supporters argued that preventing Argentina’s collapse would protect U.S. exports and regional stability.

Economic and Political Outlook

Argentina remains burdened by years of economic instability, with inflation still among the highest globally despite Milei’s sweeping budget cuts and deregulation.

The IMF estimates the country owes more than $20 billion in debt repayments next year, while reserves remain critically low.