Trump Backs Milei’s Re-election and Lends Financial Muscle to Argentina

On September 22, President Trump declared his full backing for Argentina’s Javier Milei and pledged U.S. support to stabilize the economy without calling it a bailout.

Milei cut spending sharply and removed subsidies, bringing inflation down from about 26 percent to under 2 percent by August 2025 while unemployment rose from 5.7 to 7.6 percent.

Behind the scenes, Trump’s endorsement aims to lower Argentina’s borrowing costs as it faces roughly $9.5 billion in debt payments due in 2026.

The central bank spent over $1.1 billion defending the peso this year. Milei secured a US$20 billion IMF program and $4 billion in World Bank investments to rebuild reserves.

This high-profile U.S. support also strengthens Milei at home before October’s legislative vote, where Peronists lead Buenos Aires province polls 47 percent to 33.8 percent.

Washington signals its preference for pro-market governments, hoping political backing and financial tools will lock in lasting stability in Latin America’s third-largest economy.