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Trump's support hinges on Milei's midterm success

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Argentine markets react negatively to Trump's comments

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U.S. aid not tied to ending China swap, Bessent says

(Recasts with Trump, Bessent and Milei comments from meeting in

paragraphs 1-8)

By Nandita Bose

WASHINGTON, Oct 14 (Reuters) - U.S. support for

Argentina hinges on the ruling party of President Javier Milei

succeeding in this month's midterm legislative elections,

President Donald Trump said on Tuesday, saying "we're not going

to waste our time" if Milei's party doesn't win.

Trump's remarks came as he and Milei met at the White

House just days after the U.S. agreed to provide a major

financial lifeline to the South American nation.

"I'm with this man because his philosophy is correct, and he

may win it," Trump said ahead of a White House lunch with Milei

and members of Trump's cabinet. "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's remark rattled Argentine markets that had been

buoyed by the support package recently announced by U.S.

Treasury Secretary Scott Bessent, the centerpiece of which is a

$20 billion currency swap with Argentina's central bank,

exchanging stable U.S. dollars for volatile pesos. Argentina's

main stock market reversed earlier gains and was down about 2%

following Trump's comments.

Bessent, at Tuesday's meeting, said the package - full

details of which have not been announced - is predicated on the

continuance of economic policies favored by the Trump

administration.

"Going back to Peronist policies would cause a rethink,"

Bessent said.

Bessent said, however, that the aid package was not

dependent on Argentina ending a separate swap line arrangement

with China. "American assistance to Argentina is not predicated

on ending the swap with China," Bessent said.

The economic lifeline for Argentina marks an unusual move

for the U.S., particularly under an administration that has

largely eschewed major foreign interventions.

The White House has framed the deal as a strategic effort to

stabilize a key regional ally. But it has drawn criticism at

home.

Many Democratic lawmakers have accused Trump of prioritizing

foreign bailouts and investor protections while the U.S.

government remains shut down. American farmers have also voiced

frustration, noting that China has shifted soybean purchases

from U.S. producers to Argentine growers this year.

While details of the agreement remain unclear, the bailout

could offer Milei a much-needed political boost as he works to

stave off a deepening economic crisis and shore up his party's

support.

He suffered a major setback last month when his party lost a

key provincial election and now faces a critical midterm vote

later this month.

The assistance also underscores the extent to which the

Trump administration is willing to support a political ally who

has cultivated strong ties with the president and American

conservatives in recent years.

Trump has described Milei as his "favorite president," and

the Argentine president was one of two world leaders onstage

during Trump's inauguration.