“Finally—just a heads up, I’m getting more intel, but this is highly unfortunate,” the text said. “We bailed out Argentina yesterday and in return, the Argentine’s [sic] are removing their export tariffs on grains, reducing their price, and sold a bunch of soybeans to China, at a time when we would normally be selling to China. Soy prices are dropping further because of it. This gives China more leverage on us.”
A second message said, “On a plane but Scott I can call you when I land.”
Last week, Bessent outlined on X a plan to financially support Argentina following extensive talks between longtime allies President Donald Trump and Argentine President Javier Milei, a libertarian economist with a populist, Trump-like appeal, known for wielding a chain saw and cloning his enormous mastiff dogs.
The Treasury has arranged a $20 billion swap line with Argentina’s central bank, part of an effort to infuse the South American country with capital. Stabilizing Argentina ahead of an October midterm would help Milei’s chances of staying in power. Milei has had more success taming Argentina’s hyperinflation than first expected, but has been dealing with a brewing currency crisis and several corruption scandals.
Amid Argentina’s talks with the U.S., China ordered at least 10 cargoes of soybeans from the South American country, Reuters reported, citing multiple traders.
The U.S. Department of Agriculture and Treasury Department did not respond to Fortune’s requests for comment.
Hellbound and Down 