Milei

Argentina’s President Javier Milei sang to his supporters after early results showed he had won the country’s midterm elections, bolstering his push for radical economic reforms closely watched by the US.

BUENOS AIRES, Argentina — Argentina’s libertarian leader is lavishing praise on President Trump ahead of his first White House visit on Tuesday. It’s a tactic that has helped transform President Javier Milei ’s cash-strapped country into one of the Trump administration’s closest allies.

The effusive declarations are nothing new for Milei — whose dramatic cuts to state spending and attacks on “woke leftists” have won him a following among U.S. conservatives.

“Your commitment to life, freedom and peace has restored hope to the world,” Milei wrote on social media Monday, congratulating the U.S. president on securing a ceasefire deal in Gaza, where a truce is holding after a devastating, two-year Israel-Hamas war.

“It is an honor to consider you not only an ally in the defense of those values, but also a dear friend and an example of leadership that inspires all those who believe in freedom,” he said.

The Trump-Milei bromance has already paid off for Argentina — most recently, to the tune of a $20 billion bailout.

Experts say Milei comes to the White House with two clear objectives. One is to negotiate U.S. tariff exemptions or reductions for Argentine products.

The other is to see how the United States will implement a $20 billion currency swap line to prop up Argentina’s peso and replenish its depleted foreign currency reserves ahead of crucial midterm elections later this month.

In a crisis, turning to Trump

The Trump administration made a highly unusual decision to intervene in Argentina’s currency market after Milei’s party suffered a landslide loss in a local election last month.

Along with setbacks in the opposition-dominated Congress, the party’s crushing defeat created a crisis of confidence as voters in Buenos Aires Province registered their frustration with rising unemployment, contracting economic activity and brewing corruption scandals.

Alarmed that this could herald the end of popular support for Milei’s free-market program, investors dumped Argentine bonds and sold off the peso.

Argentina’s Treasury began hemorrhaging precious dollar reserves at a feverish pace, trying shore up the currency and keep its exchange rate within the trading band set as part of the country’s recent $20 billion deal with the International Monetary Fund.

But as the peso continued to slide, Milei grew desperate.

He met with Trump on Sept. 23 while in New York City for the United Nations General Assembly. A flurry of back-slapping, hand-shaking and mutual flattery between the two quickly gave way to U.S. Treasury Secretary Scott Bessent publicly promising Argentina a lifeline of $20 billion.

Markets cheered, and investors breathed a sigh of relief.

Timing is everything

In the days that followed, Argentine Economy Minister Luis Caputo spent hours in meetings in Washington trying to seal the deal.

Reassurance came last Thursday, when Bessent announced that the U.S. would allow Argentina to exchange up to $20 billion worth of pesos for an equal sum in dollars. Saying that the success of Milei’s program was “of systemic importance,” Bessent added that the U.S. Treasury directly purchased an unspecified amount of pesos.

For the Trump administration, the timing was awkward as it struggles to manage the optics of bailing out a nine-time serial defaulter in the middle of a U.S. government shutdown that has led to mass layoffs.

But for Argentina, it came in the nick of time.

Aware of how a weak currency could threaten his flagship achievement of taming inflation and hurt his popularity, Milei hopes to stave off what many economists see as an inescapable currency devaluation until after the the Oct. 26 midterm elections.

A devaluation of the peso would likely fuel a resurgence in inflation.

“Milei is going to the U.S. in a moment of desperation now,” said Marcelo J. García, political analyst and Director for the Americas at the Horizon Engage political risk consultancy firm.

“He needs to recreate market expectations and show that his program can be sustainable,” García added. “The government is trying to win some time to make it to the midterms without major course corrections, like devaluing or floating the peso.”

No strings attached

Milei was vague when pressed for details on his talks with Trump, expected later on Tuesday. Officials say he would have a two-hour meeting with the U.S. president, followed by a working lunch with other top officials.

He was also expected to participate in a ceremony at the White House honoring Charlie Kirk, the prominent right-wing political activist who was fatally shot last month. Milei often crossed paths with Kirk on the speaking circuit of the ascendant global right.

“We don’t have a single-issue agenda, but rather a multi-issue agenda,” Milei told El Observador radio in Buenos Aires Monday. “Things that are already finalized will be announced, and things that still need to be finalized will remain pending.”

It’s not clear what strings, if any, the Trump administration has attached to the currency swap deal, which Democratic lawmakers and other critics have slammed as an example of Trump rewarding loyalists at the expense of American taxpayers.

There has been no word on how Argentina, the IMF’s largest debtor, will end up paying the U.S. back for this $20 billion, which comes on top of IMF’s own loan for the same amount in April. And that one came on top of an earlier IMF loan for $40 billion.

Despite all the help, Milei’s government already missed the IMF’s early targets for rebuilding currency reserves.

“The U.S. should be concerned that Argentina has had to return for $20 billion so quickly after getting $14 billion upfront from the IMF,” said Brad Setser, a former Treasury official now at the Council on Foreign Relations.

“I worry that this may prove to just be a short-term bridge and won’t leave Argentina better equipped” to tackle its problems, he added.

But in the radio interview before his flight, Milei was upbeat. He gushed about U.S. support saving Argentina from “the local franchise of 21st-century socialism” and waxed poetic about Argentina’s economic potential.

“There will be an avalanche of dollars,” Milei said. “We’ll have dollars pouring out of our ears.”

Debre writes for the Associated Press.

The Buenos Aires provincial election is a test of Milei’s popularity ahead of upcoming congressional polls next month.

The party of Argentina’s libertarian president, Javier Milei, has suffered a crushing defeat in local elections in the capital, Buenos Aires, even before he completes two years in office, in the most significant act of frustration with his deep-cutting economic austerity policies.

The results, announced on Sunday, put the candidate for Milei’s recently formed La Libertad Avanza (LLA) party, or Liberty Advances, Diego Valenzuela, who captured 34 percent, far behind Gabriel Katopodis, the Peronist left-wing challenger who received 47.4 percent.

LLA won just two of the eight electoral districts of the Buenos Aires province.

Milei conceded that his right-wing party’s crushing 13-point loss to his rivals represented “a clear defeat”.

“We suffered a setback, and we must accept it responsibly,” he said after the results came in. “If we’ve made political mistakes, we’re going to internalise them, we’re going to process them, we’re going to modify our actions,” he added.

In a post on X, Argentina’s former Peronist president, Cristina Kirchner, said, “Did you see Milei? … Get out of your bubble, brother … things are getting heavy.”

However, the 54-year-old economist pledged not to retreat “1 millimetre” from his agenda to aggressively roll back the Argentinian state and cut public spending. “We will deepen and accelerate it,” he said.

The election for the leadership of Argentina’s wealthiest province is viewed as a litmus test for Milei’s so-called “chainsaw” measures, as 40 percent of the country’s population lives in Buenos Aires, and it accounts for a third of the country’s gross domestic product (GDP).

Argentina will go to the polls at the end of October for congressional midterms, which will be a crucial test of deep political support, with half of the seats in Argentina’s lower house up for grabs and a third of its senate.

Congress is already dominated by opposition parties, and the defeat in Buenos Aires will represent a blow to Milei’s hopes of expanding his influence.

Unemployment figures in Argentina are currently at their highest since 2021, during the COVID pandemic, and Milei’s government has also been caught in a corruption scandal linked to his sister and close aides.

Argentina also saw widespread protests after Milei vetoed a bill aimed at increasing pensions and disability spending. Congress later overturned his veto.

The governor of the southern Chubut province, Nacho Torres, said the vote was a “wake-up call from the citizenry”, while the governor of the northeastern Santa Fe province said voters were giving a “clear warning” to Milei. “People no longer want more shouting; they want facts. We Argentines want to grow and develop with security and in peace,” he added.

The Milei government is weathering a bribery scandal as a pair of important elections approach in September and October.

Argentina’s President Javier Milei has been forced to leave a campaign rally in Lomas de Zamora, a suburb of Buenos Aires, after protesters pelted his vehicle with small rocks, bottles and other objects.

On Wednesday, Milei and members of his libertarian party, La Libertad Avanza, held a rally for voters ahead of two key upcoming elections.

On September 7, the province of Buenos Aires is expected to hold local races. And on October 26, the country faces midterm elections, which will see half of the 257-seat Chamber of Deputies up for grabs, as well as a third of the Senate.

The elections are seen as major tests for Milei as he reaches the midpoint of his four-year term as president.

But Milei, whose dark-horse election victory in 2023 upset Argentina’s political establishment, has faced backlash for the dramatic “shock treatment” he has attempted to undertake with the country’s economy.

His administration has also been rocked by a bribery scandal involving his sister, Karina Milei.

As Milei and Karina stood on the bed of an open pick-up truck on Wednesday, waving to supporters and signing autographs, witnesses reported seeing objects flying in their direction as protesters attempted to approach the vehicle.

Presidential spokesperson Manuel Adorni shared a picture on the social media platform X, with a circle highlighting what appeared to be a rock thrown in the president’s direction.

“They could have killed anyone,” Adorni said of the protesters. “They don’t care about human life, and they’ll care even less about the country. The end.”

Video captured the pick-up truck accelerating to escape the crowd. One protester held aloft a mock suitcase with Karina Milei’s face on it and dollar bills sticking out in odd places. Others chanted, “Out with Milei!”

The news agency AFP reported that one Milei supporter had to be transported by ambulance for medical care after clashes with protesters resulted in rib injuries. But no officials in the Milei pick-up truck were injured.

Milei himself used the incident to campaign on social media against “Kirchnerism”, a left-wing political movement.

“The empty-headed nutters throwing rocks resorted to violence again,” he wrote in one post. “On September 7 and October 26, let’s say at the polls: KIRCHNERISM NEVER AGAIN.”

In another, Milei put the choice more starkly: “Civilisation or barbarity.”

Milei has taken dramatic action to regulate Argentina’s spiralling inflation, but his austerity campaign has included cuts to social safety-net services, widespread government layoffs and sweeping deregulation.

He famously campaigned with a chainsaw to symbolise his approach to government bureaucracy. But critics warn that his efforts have left Argentina’s poorest citizens more vulnerable. While official statistics indicate inflation has dropped, unemployment and poverty have risen.

The bribery allegations have heightened the backlash against his administration.

Karina Milei occupies a high-level position in Milei’s government, as a general secretary to the president.

But audio recordings have captured Diego Spagnuolo, the head of the National Disability Agency and a close ally of Milei, claiming that Karina took a cut from government contracts intended to help those with disabilities.

Milei has since fired Spagnuolo, and in his public appearances on Wednesday, he repudiated the recordings.

“Everything he says is a lie,” Milei told reporters in Lomas de Zamora. “We are going to bring him to justice and prove he lied.”

Milei put on a united front with his sister at Wednesday’s rally, appearing side by side with her in the pick-up truck.