Argentina just delivered a political earthquake that’s got President Trump cheering from the sidelines.
Argentine President Javier Milei and his party, La Libertad Avanza, pulled off a stunning upset in the country’s legislative elections, earning high praise from Trump for their unexpected success and the economic strides that followed.
The New York Post reported that since Milei took office in December 2023, he’s been fighting an uphill battle with a minority in Congress, struggling to push through his bold economic reforms.
Monthly inflation, once a staggering 12.8%, has dropped to 2.1% by September of this year—a sign his policies might be working. But it hasn’t been all smooth sailing for Milei.
His party stumbled badly in a provincial election in Buenos Aires earlier this year, sparking investor panic over declining popularity, harsh austerity measures, and lingering corruption scandals. The market trembled at the thought of another flop derailing his aggressive agenda.
Enter the United States, riding in with a financial lifeline. The Trump administration extended a $20 billion currency swap to Buenos Aires, with Treasury Secretary Scott Bessent hinting it could grow to $40 billion with private sector backing.
This came after Milei’s team burned through roughly $700 billion trying to prop up the peso, nearly draining Argentina’s dollar reserves. The White House framed this support as a strategic move to counter growing Chinese influence in Latin America.
They even issued a not-so-subtle warning that the aid could vanish if Milei didn’t secure a win. Talk about playing hardball with geopolitics!
Fast forward to the legislative elections, and Milei’s party defied every gloomy forecast. La Libertad Avanza boosted its seats in the Chamber of Deputies from 37 to at least 64, while picking up at least six seats in the Senate.
This wasn’t just a win; it was a power shift that gives Milei a stronger hand to enact his vision. President Trump couldn’t contain his excitement over the results.
“Wow! That was a big win!” he exclaimed, adding, “He was a BIG victor, he had a lot of help from us!”
Trump’s enthusiasm isn’t just cheerleading—it’s a nod to his brand of outsider politics taking root abroad. It’s a quiet jab at the global establishment that often scoffs at such unorthodox leaders.
Trump also pointed out the financial upside for America in this deal. “That election made a lot of money for the United States. The bonds have gone up,” he declared with characteristic flair.
Indeed, Argentine bonds and debt ratings saw improvement post-election, a win for investors on both sides of the hemisphere. Trump’s angle is clear: supporting allies like Milei isn’t just ideological—it’s good business.
With this legislative triumph, Milei’s grip on power is firmer than ever. Looking ahead to his reelection bid in 2027, this could be the springboard he needs to challenge the status quo further, proving that shaking up the system can yield results when old methods fail.
