The year is drawing to a close and an analysis of the relationship between President Javier Milei and his US counterpart, Donald Trump, has a positive balance.
Facing exchange-rate volatility ahead of Argentina’s 2025 midterm elections, the relationship with Washington was the government’s main political asset. Trump and US Treasury Secretary Scott Bessent helped to steady the situation, allowing Milei to reach polling day amid relative calm.
For the ruling La Libertad Avanza coalition, Washington’s explicit backing was the “key” that made it possible to get through the weeks of greatest financial uncertainty ahead of the legislative elections.
In an unprecedented gesture of financial support, the US Treasury intervened directly in the markets, purchasing pesos. Within hours, Bessent’s name became widely known in Argentina. That manoeuvre – through which the US eventually made a profit – was crucial in neutralising currency runs and stabilising the dollar in the run-up to the election, easing pressure on the government and its candidates.
But as the year comes to an end, one major issue remains unresolved: a pre-announced, long-trailed bilateral trade agreement.
Despite an announcement by the Trump administration last November, the signing of the document failed to materialise as the year reached its end.
“The agreement with the United States is practically finalised. What we are waiting for is confirmation of agendas in order to set a signing date and conclude the process,” ARgentina’s Foreign Minister Pablo Quirno said a few days ago, without providing further details.
The trade agreement, according to reports, includes tariff reductions, the removal of trade barriers, intellectual property provisions and the alignment of standards.
Milei has travelled to the United States 14 times since he took office in December 2023, but he surprised Washington by cancelling his planned 15th visit, which was scheduled for early December. The President decided not to attend the draw for the 2026 World Cup, to which he had been invited personally by Trump, due to ongoing tensions with the head of the Argentine Football Association (AFA), Claudio ‘Chiqui’ Tapia, who did attend.
With no agreement signed and that final photo opportunity with Trump missed, 2025 draws to a close on a negative note after a successful year for bilateral relations. Further advances are expected next year, when that trade deal is finally inked.
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