Scott Bessent is under increasing scrutiny as the Trump administration’s multibillion-dollar financial rescue of Argentina sparks political backlash. Bessent, the Treasury secretary, is spearheading the initiative aimed at bolstering President Javier Milei’s libertarian government, which the U.S. views as a vital ally in Latin America. This financial aid is intended to stabilize Argentina’s economy and support its struggling currency, the peso. However, with Argentina facing midterm elections this Sunday, the timing and nature of this assistance have drawn criticism from various political factions, including members of Trump’s own base.
Critics, including former U.S. Treasury official Brad Setser, argue that the administration is having difficulty aligning its support for Argentina with its professed “America First” doctrine. “I do think that the administration will have difficulty explaining how ‘Argentina first’ is ‘America first,’” Setser remarked, emphasizing the lack of a straightforward connection between the U.S. support and its national interests. He further pointed out that the Trump administration seems overly eager to help Milei without demanding the significant policy reforms often associated with such support.
The scale of the proposed assistance has been substantial. On Tuesday, Bessent finalized a $20 billion swap line agreement with Argentina’s central bank while the Treasury is also facilitating a potential additional loan of $20 billion through U.S. banks. The government has actively intervened in currency markets to bolster the peso as well. “President Milei has worked hard to reverse previous irresponsible economic policies,” Bessent stated on social media, underscoring the administration’s commitment to ensuring stability in the region.
However, discontent has begun to fester within Trump’s base, particularly concerning the implications of spending taxpayer dollars to support a foreign economy. Congresswoman Marjorie Taylor Greene questioned the rationale behind allocating billions to Argentina when many Americans are struggling economically. Her sentiments reflect growing frustrations among constituents who feel neglected as the administration appears to prioritize international aid over domestic challenges.
The agricultural community has further expressed its discontent, particularly following reports of China’s intentions to replace soybean imports from the U.S. with purchases from Argentina amidst ongoing trade tensions. Trump’s comments regarding upcoming U.S. imports of Argentine beef added fuel to the fire, with many Republican lawmakers from farming states expressing disbelief over the administration’s focus. “That really went down like a lead balloon,” Nebraska Republican Don Bacon observed, highlighting the discord between agricultural interests and U.S. foreign policy.
Senator Deb Fischer of Nebraska voiced her concerns directly to the White House, stressing the dire circumstances facing U.S. agriculture and urging the administration to prioritize trade deals that favor American producers instead of imports from abroad.
In contrast, some policy analysts defended Trump’s approach, arguing that supporting Milei aligns with long-standing American values of free enterprise and could reinforce U.S. leadership in the region. Michael Strain from the American Enterprise Institute asserted that while there are risks, the initiative is consistent with American interests.
Opposition from Democrats in Congress has capitalized on the situation to criticize the administration, with a group led by Representative Linda Sánchez alleging that Washington’s financial assistance is being used as leverage in Argentina’s electoral process. In a letter to Bessent, they contended that U.S. financial resources should not be contingent on the political outcomes of foreign elections.
As tensions rise both domestically and abroad, the ramifications of Trump’s financial rescue plan for Argentina could have lasting implications, shaping both geopolitical alliances and the political landscape ahead of upcoming elections.
