[Wen/Observer Online Wang Yi]"How did 'US First' become 'Argentina First'?" This question from Brad Setser, a senior fellow at the Council on Foreign Relations and a former U.S. Treasury official, is becoming a widespread question about this administration in U.S. political circles. After the Trump administration provided Argentina with tens of billions of dollars in financial aid to support its President Millay, political opposition to the matter in the United States rapidly expanded, and Treasury Secretary Scott Bessent is facing tremendous pressure.
The British "Financial Times" reported on October 22 that Besant was the leader of the Trump administration's plan to assist Argentina. The plan supports the economy of the Millay government through currency swaps, private loans and foreign exchange market intervention. With the monetary system, they regard Millay as a key Latin American ally of the United States.
However, this "Argentina rescue" comes on the eve of the country's mid-term elections. Trump's move at this time has aroused widespread doubts in U.S. political circles. Even some Trump's close allies in the Make America Great Again (MAGA) camp and some Republican lawmakers have also publicly opposed the aid plan.
According to Setzer, the Trump administration has had difficulty explaining “why ‘America’s priority’ has become ‘Argentina’s priority’,” and “the Trump administration has not rationally assessed American interests ... they are too hasty to support Millie, but they do not insist on major policy reforms that are usually accompanied by such support.”
The Central Bank of Argentina announced on Monday that it has signed an exchange rate stability agreement worth $20 billion with the Treasury Department, with US private bank loans of up to $20 billion being negotiated, and the U.S. has launched a direct market intervention to support the peso.
On the 21st, Bescent wrote on the social media platform X, "President Milei has been working hard to reverse previous irresponsible economic policies, including excessive spending, out-of-control fiscal and blind borrowing." "We don't want Latin America to have a failed country again. A strong and stable Argentina as a neighbor is obviously in the strategic interests of the United States."
But dissatisfaction is growing at the Republican grassroots level. Georgia Republican Congressman Marjorie Taylor Green roared on X on the 16th:"Please tell me, using 20 billion or even 40 billion dollars of taxpayers 'money to save a foreign country can be called' America first'"," Many Americans have no savings of their own and are still maxing out their credit cards to live."
Rep. Marjorie Taylor Greene, R-Georgia, posted on X, angrily denouncing the Trump administration's aid to Argentine. Social media
At the same time, the Sino-US trade friction involves Argentina, which also puts the Trump administration in a new embarrassing situation. Not long ago, China replaced American soybean orders with Argentine soybeans, causing American farmers to complain that government assistance has helped their industrial competitors instead.
Anger in the U.S. agricultural community reached its peak when Trump recently called Argentina "fighting for survival" and announced plans to import Argentine beef.
"It's really like a shot put," said Rep. Don Bacon, Republican of Nebraska."A lot of fellow Republicans I know, especially from the Midwest, feel the same way.""This happens when you have a president who sets policies based on personal character. He obviously likes Argentina's leaders, so he bends down for him."
Sen. Deb Fischer, R-Nebraska, wrote on X that she had communicated with the White House to express "serious concerns" about imported Argentine beef and urged the administration to "prioritize helping its own farmers rather than aggravating their plight."
There are also conservative scholars who defend Trump. Michael Straine, an economist at the American Enterprise Institute, believes that the risks of U.S. aid to Argentina are controllable."The reforms Millay is implementing are in line with the traditional free market philosophy of the United States," and helping Millay will help strengthen the United States. influence in the Western Hemisphere.
However, for Democrats on Capitol Hill, this is an opportunity to counterattack the Trump administration. Democratic lawmakers led by California Rep. Linda Sanchez sent a letter to Besant on the 21st, accusing Trump of linking financial aid to Argentina's election results and threatening to withdraw aid if Millay lost.
Democrats sarcastically said in the letter: "The authority used by the U.S. Treasury to respond to the international financial crisis is for situations that are truly in the national interest of the United States, rather than a political tool used to interfere in other countries 'elections."
At the same time, external analysts believe that even if the Trump administration "throws down tens of billions of subsidies", the United States cannot stabilize Argentina's fragile financial system.
"U.S. support may temporarily ease Argentina's financing pressure, but it cannot replace credible monetary policy." Hector Torres, former IMF Argentina executive director, believes Milei should stop defending the peso and rebuild the central bank's dollar reserves instead. As of October 17, the total reserves of Argentina's central bank dropped to $41.2 billion, a decrease of $1 billion from a week ago, and the net reserves were much lower than this and were not officially announced.
Economists believe that it is difficult for the Millay government to maintain the current exchange rate system after the election. "Letting the peso float freely is inevitable, and a devaluation could reach 40% to 50%," warned Manuel Heinz, former El Salvador's finance minister."Argentina is like a patient with a broken leg and still bleeding. No matter how much blood is transfused, you can't save it if you don't sew the wound first."