Reed: Trump’s Bailout of Argentina’s Right-Wing President Shortchanges Americans

WASHINGTON, DC - With everyday costs in the U.S. on a tariff-fueled upswing and a federal government shutdown looming, the Trump Administration is sending billions in American taxpayer money to bail out right-wing Argentine President Javier Milei, who once handed Elon Musk a 'bureaucracy chain saw' onstage at the Conservative Political Action Conference (CPAC). President Donald Trump and U.S. Treasury Secretary Scott Bessent are offering Argentina a $20 billion financial backstop to try to help their far-right ally stabilize Argentina's financial turmoil ahead of the South American country's October midterm elections that are critical to Mr. Milei retaining power.

While Trump's risky U.S. taxpayer-financed backstop offers very little upside for U.S. taxpayers, it appears to be a huge financial victory for a few wealthy investors and organizations with close ties to Bessent and Trump. Meanwhile, Trump's so-called 'deal' is a gut-punch to American farmers who are already reeling from Trump's tariffs because Argentina just suspended its soybean export taxes so it can undercut American farmers and boost Argentinian sales to China.

The Trump Administration's move comes just months after Argentina received a separate $20 billion loan from the International Monetary Fund (IMF) and on top of another $40 billion that Argentina already needs to repay to the IMF. The Trump Administration has no plan for getting back American taxpayers' $20 billion, especially as Argentina already must repay the IMF.

"Instead of lowering costs for Americans and preventing them from losing their health care, Donald Trump is taking $20 billion to prop up a flailing right-wing Argentinian politician whose highly indebted foreign government has already taken dozens of bailouts from international banks. Milei's political party has been plagued by corruption scandals. So this could end up being a costly, ill-advised handout from President Trump to President Milei.

"Meanwhile, a few of the Trump Administration's wealthy, well-connected friends appear to be cashing in on the move. The United States should help our foreign neighbors in need, but it should be done in a strategic, transparent way that broadly protects American interests. Instead, President Trump is handing our competitors a financial windfall while sidelining American farmers and shrinking the market for U.S.-grown products.

"President Trump's disjointed policies are bailing out Argentina's president and helping to make Argentina's crops more attractive to foreign markets while raising costs on Americans. This is another terrible Trump 'deal' for Americans that put his narrow interests above the nation's. Trump's policies are causing more financial hardships for farmers, rural communities, and consumers in all fifty states."

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