Trump Offers Full Support to Argentina...Opens Up to Beef and Currency Swap

Trump Bristles at Questions About U.S. Farmers' Losses
"Argentina Is Fighting for Survival"
Peso Hits Record Low Amid Market Turmoil

Javier Milei, President of Argentina (left), is attending a ruling party event held on the 17th ahead of the midterm elections scheduled for the 26th (local time) and posing for a commemorative photo. Photo by Reuters Yonhap News

United States President Donald Trump, who is providing full support to the government of Javier Milei in Argentina, has made it clear that he intends to ease restrictions on imports of Argentine beef, stating, "Argentina is struggling economically."

On October 19 (local time), President Trump told reporters on his private plane returning from Florida to Washington, D.C., "Argentina is not receiving any special benefits. They are fighting for survival and have no money," announcing this policy direction. This was in response to a question about what he would say to American farmers who feel Argentina is receiving more benefits.

According to local Argentine media, President Trump rebuked the reporter who asked the question, saying they knew nothing, and reiterated, "Argentina is fighting for survival, and there is nothing advantageous for Argentina."

The Argentine daily La Nacion reported that this question was raised after President Trump told reporters that the United States was considering importing Argentine beef to lower domestic prices.

The details of the trade agreement between the United States and Argentina have not been made public. Local media have reported that many items between the two countries will either be duty-free or subject to a 10% tariff in the future. In particular, the local daily Clar?n reported that the government of Javier Milei in Argentina hopes to increase its annual duty-free beef export quota to the United States from 20,000 tons to 70,000 tons, and for any additional exports, to have a reduced tariff of 10% compared to the current rate.

President Trump is providing full support to the Milei administration, which is considered an ally in South America. This support appears to be driven by both his personal relationship with President Milei, often referred to as the "Trump of South America," and economic incentives such as South America's abundant natural resources.

American soybean farmers have also expressed dissatisfaction, as the U.S.-China tariff war has blocked exports to China, and Argentina has taken over the Chinese market. Argentina exported as much as 7 million tons of soybeans to China instead of the United States.

Financial support has also continued. The Trump administration provided Argentina with a total of 40 billion dollars (about 57 trillion won) in bailout funds, and the Central Bank of Argentina signed a currency swap agreement with the U.S. Treasury Department worth up to 20 billion dollars (about 28.4 trillion won) for exchange rate stabilization. On October 15, U.S. Treasury Secretary Scott Besant also announced preparations for a new private fund worth 20 billion dollars (about 28 trillion won).

However, despite the Trump administration's full support, the Milei government continues to face serious challenges. According to the Financial Times (FT) of the United Kingdom, the Milei administration has struggled to calm severe turmoil in the financial markets since losing the local elections last month. The upcoming midterm elections scheduled for October 26 are expected to be a critical turning point for President Milei's political future.

As of the market close on October 23, the dollar-to-peso exchange rate stood at 1,477 pesos per dollar. The value of the peso is at a record low and falls within the lower end of the exchange rate management band introduced in April. FT analyzed that, despite intervention by the U.S. government, demand for U.S. dollars among individual investors continues to outpace these efforts.

This content was produced with the assistance of AI translation services.