Trump-pledged support for Argentina stirs anger among Republicans

President Donald Trump’s potential $20 billion financial backstop for his ally, Argentina’s leader Javier Milei, is running into growing opposition from Democrats, Republicans and farm groups over concerns the deal would hurt farmers and use U.S. taxpayer resources to backstop a flailing foreign economy at U.S. taxpayers' expense.

Trump and Treasury Secretary Scott Bessent earlier this week pledged a major economic rescue package for Argentina. Bessent, who has been touting the plans on social media and TV appearances in recent days, says the deal is needed to stabilize the nation’s financial turmoil ahead of October midterm elections that are critical to Milei retaining power and continuing reforms that supporters say will turn around the country’s floundering economy.

But the economic lifeline to a foreign country — one which has struggled for decades to pay its international creditors and rein in government spending — also carries some political and financial risks for the White House. Democrats have already seized on the opening to criticize a foreign bailout at U.S. taxpayer expense.

And powerful agriculture groups and their Republican allies in Congress are also sounding alarms about the deal.

“Why would USA help bail out Argentina while they take American soybean producers’ biggest market??? We shld use leverage at every turn to help hurting farm economy Family farmers shld be top of mind in negotiations by representatives of USA,” Sen. Chuck Grassley (R-Iowa) said on X Thursday.

Grassley said farmers were “very upset” about Argentina “selling soybeans to China right after USA bail out.”

The American Soybean Association said Argentina, a major agricultural producer, sold 20 shiploads of soybeans to China around the same time Bessent announced the U.S. was exploring a financial package. The transaction was eased by Buenos Aires waiving taxes on its soybean exports. China has turned to other major soybean exporters, such as Argentina and Brazil amid a trade war with the U.S.

The White House directed POLITICO to Trump's comments in the Oval Office on Thursday, where he said he'd use some of the windfall from tariffs to support U.S. farmers. The White House added that the administration believes an Argentine economic collapse would hurt U.S. farmers more by lowering the price of Argentine agricultural commodities. Treasury did not comment.

A person familiar with the discussions within the Trump administration about Argentina, indicated Milei’s star has dimmed in some corners in the administration. The person, who was granted anonymity to speak freely about the administration's evolving approach to Argentina, said this policy is being mainly pursued by Treasury and expressed concerns about Milei’s ability to actually lift his country out of its economic doldrums.