President Donald Trump’s attempt to give Argentina’s fledgling economy financial assistance is creating a headache for him back in the U.S. as part of his base — farmers — are upset about the possibility of bailing out a country that is competing for a major crop — soybean exports to China.
Trump and Treasury Secretary Scott Bessent promised a possible $20 billion aid package to Argentina’s leader Javier Milei. They argue the plan is needed to stabilize a major Trump and U.S. ally ahead of October elections that are important for Milei to retain power. At the same time, some of Milei’s policies are helping U.S. investors and negatively impacting American soybean producers.
Investors and hedge funds have bought into Milei’s stewardship of the bedraggled country. Fidelity Investments, T. Rowe Price Group and Pimco all own bonds in Argentina, according to Bloomberg. In September, traders began selling off investments there after Milei lost some crucial local elections over corruption scandals.
News of U.S. help boosted some of the assets, but Argentina’s currency is still performing poorly among the stable of international currencies.
Hellbound and Down 