Milei government fears loss of US financial aid after Trump defeat

Javier Milei arrived in Madrid and ordered a political, media and diplomatic silence following Donald Trump's defeat in the US midterm elections. Close allies described the result as the worst news the president could receive, and neither Milei nor Foreign Minister Pablo Quirno made any public comment or congratulated the Democrats. Their X accounts remained inactive while officials assessed the impact on Argentina's financial relationship with Washington.

Government sources said they expected a difficult election for Trump but never imagined such a heavy defeat. The loss weakened the Republican leader, Milei's main ally, and positioned future Democratic candidates to contest the White House in 2028. Officials also asked Ambassador Alec Oxenford to report on the status of the Democratic law in Congress and whether it retains parliamentary standing.

“If I were Caputo I would be less calm calling Bessent to make sure the swap is there. And I would be thinking about alternatives.”

The Trump administration and Treasury Secretary Scott Bessent had promised during the campaign to rescue Argentina again if necessary for the 2027 debt maturities of 23.3 billion dollars, in order to secure Milei's re-election in those elections. Now there is doubt over whether Bessent will remain in his post after the defeat.

Wall Street economist Alberto Ades, who knows Milei personally and was received by the president during his recent visit to Buenos Aires, urged Economy Minister Luis Caputo to start thinking about alternatives. Ades said he would be less calm calling Bessent to make sure the swap is in place.

In the ruling coalition, some officials initially expected Democrats to win the House while Republicans kept a competitive Senate position. The Democratic victory in traditionally Republican states such as Texas and Kansas surprised top officials, who had not yet contacted their Trumpist interlocutors to determine how to proceed.

Some government members warn that the financial rescue arranged by the Treasury in 2025 and promised again by Bessent for next year if needed may not be so assured. Others argue the new congressional composition poses no immediate threat to bilateral relations or future assistance.

Milei is in Spain to attend a new edition of the Ibero-American Summit chaired by King Felipe VI.