“Why would USA help bail out Argentina while they take American soybean producers’ biggest market, he said.
The American Soybean Association’s president, Kentucky farmer Caleb Ragland, said in a statement in September that “frustration” with the Trump administration was “overwhelming.”
Trump says deal helps South American conservative ally before election The Argentine bailout comes at a politically crucial time for its controversial president.
The U.S. deal seeks to stabilize the peso just as Argentine voters head to the polls.
“If he loses, we are not going to be generous with Argentina,” Trump said.
Concerns in the United States have been raised by President Donald Trump’s $20 billion bailout of Argentina’s economy. S. . particularly among American farmers who are in dire need of assistance in resolving a crop crisis brought on by his trade war with China.
President Javier Milei of Argentina met with Trump and senior U.S. S. . Treasury Secretary Scott Bessent was among the officials who visited the White House on Tuesday.
Bessent announced a $20 billion financial lifeline, including a framework for a currency swap with Argentina’s central bank to support the Argentine peso, almost a week prior to the meeting.
Trump said to reporters during the meeting, “We just want to see Argentina do well.”.
Specifics are still unknown.
Bessent stated the U in an X post last week. A. agreed to a loan of $20 billion with the central bank of Argentina, where the U.S. S. . Dollars will be converted to pesos by Treasury.
It is anticipated that those dollars will eventually be reimbursed, according to Bessent.
Also, Bessent stated last week that the U. A. directly bought pesos, without mentioning the amount.
Ultimately, the dollars the Treasury Department is offering to Argentina’s central bank are U.S. dollars, and as of Tuesday, it had not released any information regarding the terms of the swap agreement. A. taxpayer funds.
“You can refer to it as a rescue or a bailout, but it is a line of credit to a nation that would otherwise run out of reserves,” Brad Setser, a former Treasury official and senior fellow at the Council on Foreign Relations, told ABC News.
The agreement is not a bailout, as Bessent has stated on numerous occasions. S. is promoting the economic reforms of a significant ally in South America and furthering U.S. S. regional strategic interests.
Requests for additional information about the deal from ABC News have not received a response from the Treasury Department.
Leaders on both sides and farmers speak out.
Farmers, Democrats, and even some Republicans have expressed disapproval of the bailout, raising questions about why the U.S. S. would spend billions of dollars to help a foreign nation’s economy, particularly at a time when thousands of American soybean farmers are struggling and in dire need of assistance.
In the midst of the trade war with the United States, China ceased buying American soybeans. China buys more than half of U.S. soybeans, making it the biggest buyer of American soybeans, according to the American Soybean Association. S. in 2023 and 2024, exports.
Argentina and Brazil’s farmers are increasingly supplying Chinese markets with soybeans, despite some American farmers expressing fear of bankruptcies and foreclosures due to their losses.
On Tuesday, Ben Steffen, a corn and soybean farmer from Nebraska, told ABC News from his tractor that the U. S. . is providing financial support to our rival in the soybean production industry. “.
He stated, “Clearly, people are not happy about the markets, and my neighbors are not happy about bailing out Argentina.”.
Darin Johnson, a farmer from Minnesota, claimed that the United States has lost money as a result of China. S. . leverage in trade negotiations by meeting the crop’s demand in China.
He did, however, add that despite their displeasure with some of the administration’s policies, a large number of farmers continue to support Trump.
“We are running out of time,” Johnson stated, “but we are going to put it to good faith in this administration that we are going to get a trade deal.”. “There is still a fair amount of uncertainty in the absence of some assistance from this administration, as we are still unsure of what is happening. “,”.
The bailout for Argentina appears to be at odds with Trump’s “America First” philosophy, Iowa farmer Ryan Marquardt told ABC News on Tuesday.
“It does seem like you are helping your rivals.”. It does appear to go against the America First philosophy,” he stated. “I don’t think there’s any situation in which we win that deal. “..”.
During an uncertain and turbulent economic period, Democrats have charged that the White House is ignoring farmers and other Americans.
“The truth is clear: Trump put America second, bailing out another country while abandoning American farmers,” the Democratic National Committee stated in a press statement on Monday.
Republican Sen. from Iowa. When rumors of the Argentine deal were circulating last month, Chuck Grassley also attacked the administration’s priorities in an X post.
“Why would the United States aid Argentina when they steal the largest market for American soybean producers?” he asked. “We should utilize every available tool to support the struggling farm economy. American representatives should prioritize family farmers in their discussions.”. “,”.
In September, Kentucky farmer Caleb Ragland, president of the American Soybean Association, said in a statement that his “frustration” with the Trump administration was “overwhelming.”. “,”.
“U. S. . Harvest has begun, soybean prices are declining, and farmers are reading headlines about the U.S. getting a trade deal with China rather than it. S. . As Argentina lowers its soybean export taxes and sells 20 shiploads of Argentine soybeans to China in two days, the government is providing $20 billion in economic assistance to the country,” Ragland stated.
He continued, “As our competitors overtake the United States in the world’s largest soybean import market, the farm economy is suffering.”.
Trump has pledged to support the soybean farmers, even going so far as to say that tariff revenue would be utilized to provide them with financial support. However, as of Tuesday, no formal proposal had been made to achieve this goal.
Delays in implementing an aid package have been attributed by the administration to the ongoing federal government shutdown.
China has also been urged by the president to buy U. S. . soybeans—ineffectively.
In a statement to ABC News, White House spokesperson Kush Desai stated that “President Trump promised to prioritize American farmers, and every historic trade agreement that his Administration has made with the EU, Japan, and others includes unprecedented provisions to expand American agricultural exports.”.
“In addition to being dedicated to using tariff revenue to help farmers who have been left behind because of unfair foreign trade practices, the Administration continues to fight for American farmers in trade negotiations,” he continued.
Trump claims that the agreement benefits his conservative ally in South America prior to the election.
The controversial president of Argentina is receiving the bailout at a pivotal moment in his political career.
Milei has gained notoriety for his libertarian views and has been spotted with conservative leaders and personalities, such as Elon Musk, with whom he joined at this year’s CPAC and praised Musk’s DOGE cuts while handing him a now-famous mock chainsaw.
In Argentina, Trump has praised Milei’s right-wing, cost-cutting agenda and supported his leadership on multiple occasions.
Prior to his Tuesday meeting with Milei, Trump told reporters, “They have a great leader.”.
But in Argentina’s October, the 55-year-old is up against some fierce competition. 26 election because, according to Reuters, he has been plagued by growing disapproval ratings in recent months.
The U. S. Just before Argentine voters cast their ballots, a deal aims to stabilize the peso.
“A great country . is being overtaken by a great philosophy with our help. We want him to succeed,” Trump stated on Tuesday, adding that other South American nations might take political cues from Milei if it succeeds.
Later, Trump stated that the currency exchange is reliant on Milei’s performance in the next national elections.
Trump declared, “We are not going to be generous with Argentina if he loses.”. He declared, “We’re gone if he doesn’t win.”.
If the currency swap was merely to aid Milei in the next election, Trump responded “no” when asked how it was an “America First” policy.
Bessent said Tuesday that the U.S. S. is promoting peace in South America by utilizing its economic might.
According to Bessent, “it’s hope for the future.”. “I believe that the bridge will allow the U. S. is providing them with the strong policies that will allow Argentina to regain its glory. “.”.
Examined are Bessent’s finance colleagues.
Bessent has also been under fire because of Argentina’s connections to some of his former financial colleagues.
Former Bessent employee Rob Citrone is a billionaire who, according to SEC filings, has substantial holdings in Argentina and Latin America.
An ABC News representative for Citrone and his hedge fund, Discovery Capital Management, declined to comment.
After Milei’s election, Bessent’s longtime friend, billionaire Stanley Druckenmiller, has openly stated that he made investments in Argentina. When contacted for comment by ABC News, Druckenmiller did not immediately respond.
Messages asking for comment on the deal and reports that Bessent had discussed Argentina with Citrone were not answered by the Treasury Department.
Bessent said in a CNBC interview last week that the “trope that we’re helping out wealthy Americans with interest down there couldn’t be more false” and denied the deal had anything to do with his finance colleagues. “.”.
In other words, we’re keeping a U. A. “Strategic interest in the Western Hemisphere,” he continued.
-This report was contributed by Fritz Farrow and Isabella Murray of ABC News.
