The Trump administration’s so-called bailout of Argentina’s economy is raising some eyebrows and has plenty of second-guessers. The administration is looking to provide an additional $20 billion in financing through a mix of sovereign funds and the private sector.
It comes on top of the $20 billion commitment the U.S. already made with Argentina’s President Javier Milei on Tuesday.
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The initial $20 billion assistance is a currency swap in which the U.S. Treasury will trade dollars for pesos in what amounts to a loan with Argentina. The U.S. expects Argentina to eventually pay the money back.
“We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds that, I believe, would be more focused on the debt market,” said Treasury Secretary Scott Bessent on Wednesday. He called it “a private-sector solution” and said “many banks are interested in it and many sovereign funds have expressed interest.”
Assistance draws concerns
However, many American farmers are not happy. One Midwest farmer told ABC News that America sending billions to Argentina seems counterintuitive to Trump’s America First ideology.
Some farmers have even questioned the timing, as China is currently not buying any soybeans from the U.S. amid a trade battle between the two countries.
Instead, China has turned its attention to buying soybeans from Argentina and Brazil.
Iowa Sen. Chuck Grassley expressed similar concerns on X. He wrote, “Why would the USA help bail out Argentina while they take the American soybean producers’ biggest market?”
