Economy Minister Luis Caputo stated on Wednesday that Donald Trump’s significant midterm defeat would not impact relations with Argentina, asserting that President Javier Milei’s administration is equipped to endure any potential financial turbulence independently of US support. “For Argentina, nothing changes. It was an expected result,” Caputo said at an event organised by the FIEL economic research institute. He said he had already discussed the matter with the US Treasury during G20 meetings. The minister asserted that the nation’s economic fundamentals remain robust and cautioned speculators against wagering on a resurgence of pressure against the peso. “If they come, we’ll have to hit them with another stone,” he said. Milei has not yet made a public statement regarding the elections, and the President’s Office has also refrained from issuing any statements.
A report, citing unnamed Casa Rosada officials and La Libertad Avanza sources, indicated that the Milei administration had foreseen a challenging evening for Trump’s Republicans. Voters “grew tired of them not fulfilling their mandate,” stated one source. Nonetheless, the government indicated that it does not anticipate a significant alteration in the bilateral relationship. “The American establishment, which is the one that truly governs, will want Milei to continue; it’s not that they’re going to support Cristina [Fernández de] Kirchner, who has a better relationship with China,” argued another libertarian source, downplaying the defeat. Presidential adviser and campaign strategist Santiago Caputo expressed his views online, asserting that the “only indisputable fact” regarding the US election was that “Democrats, Kirchnerism, Russia, Iran, Hezbollah and China’s Communist Party were celebrating.”
In a post on X, Caputo emphasised the necessity of analysis to arrive at sound conclusions, commending the transparency of the US electoral system. He referenced exit polls indicating that young white men had moved toward the Democrats, a demographic that Trump had secured by a margin of 28 percentage points in 2024. Trump’s defeat has prompted enquiries regarding the financial backing that assisted Milei’s administration in managing last year’s currency volatility ahead of Argentina’s midterm elections. The US Treasury intervened in the foreign exchange market and provided a US$20-billion currency swap facility, of which only US$2 billion was ultimately utilised. Trump’s Treasury Secretary Scott Bessent later claimed that the deal was financially beneficial for Argentina. Democrats have put forth legislation aimed at preventing a recurrence of bailouts, yet a simple congressional majority would not suffice to inhibit the Treasury from extending assistance.
Argentina is confronted with approximately US$4 billion in financial commitments in the coming year, as analysts caution that a diminished Trump administration may hinder the pursuit of necessary support. The defeat could also influence US policy regarding China and Latin America, particularly as US companies increase their investments in shale oil and gas fields at the extensive Vaca Muerta shale formation. Fernández de Kirchner spearheaded the opposition’s response to the outcome. She marked the occasion with a succinct post on X in English, stating: Fernández de Kirchner led the opposition’s reaction to the result. She celebrated with a brief post on X in English, writing: “Beautiful morning!!!” Days earlier, the former president had predicted Trump’s defeat in an interview, while floating a possible 2027 presidential bid if her political rights were restored. She is currently jailed under house arrest as she serves a sentence for corruption and is banned from running for office.
