Market goes nuts after Trump talks about Argentina.
The meeting between [Nombres] and Javier Milei at the White House started off friendly but took a serious turn when US President hinted that assistance to Argentina would depend on the electoral outcome. Despite the initial show of unity, more questions than certainties arose from the meeting.
## Backing with fine print
The US President’s welcoming attitude towards [Nombres] was initially seen as a sign of strong support for Argentina’s economic situation. However, it became clear that this support was conditional on the electoral performance of the Argentine president. The message was straightforward: the relationship with Buenos Aires would change if Milei were to lose power.
The recent $20 billion “swap” approval by the US Treasury to bolster the reserves of the Argentine Central Bank added to the uncertainty surrounding the situation.
## Elections on the horizon and conflicting signals
As Argentina heads into legislative elections amid political and economic tension, the statements by Trump and his Treasury Secretary were perceived as a warning. The ruling party faces challenges, with potential contenders emerging for the upcoming presidential elections.
The conditional tone of the announcements by US officials raised concerns, leading to immediate reactions in the markets. It was made clear that Washington would closely monitor the progress of “friendly” governments in Latin America, including Argentina.
In this delicate balance between ideological affinity and concrete limits, the meeting at the White House highlighted the need for external support for Milei’s agenda and the US’s strategic interests in the region. The message of cooperation came with a warning that American generosity was not guaranteed, leaving Argentine politics and markets in a state of anticipation.
