The United States Treasury Secretary, Scott Bessent, visited Argentina on Monday, April 14th, to express support for the economic and fiscal reforms being pursued by the Milei government. He warned that China is targeting Latin America, exporting a “predatory aid model” similar to what they have implemented in Africa, and stated that the United States will collaborate with allies to prevent Beijing from expanding its influence.
During his visit to Buenos Aires, Bessent met with President of Argentina, Javier Milei, emphasizing that the Trump administration is “fully behind Argentina’s historic reforms.”
This marked the first visit by a U.S. Treasury Secretary to Argentina since Trump’s second term, with the last similar visit dating back to the G20 Summit during Trump’s first term.
Last week, the Milei government reached a total of $20 billion extended financing agreement with the International Monetary Fund (IMF) for a period of 48 months. Additionally, they announced a $12 billion loan plan with the World Bank and a $10 billion loan agreement with the Inter-American Development Bank (IDB).
Bessent noted that Argentina has completed three major economic adjustments, including significant fiscal, monetary, and exchange rate adjustments announced last Friday. These policies highlight the determination of the Milei government to end longstanding currency controls and rebuild market confidence.
“I am here today to express support for President Milei. The reforms he is implementing, in my view, are historic and are rescuing Argentina from the brink,” Bessent stated in an interview with Bloomberg TV.
Bessent openly criticized China’s practice of signing so-called aid agreements in Africa, which he described as predatory deals aimed at securing mining rights, burdening countries with massive debts, and leaving future generations impoverished and resourceless.
According to data from the Boston University Global Development Policy Center, China provided over $182 billion in loans to 49 African countries from 2000 to 2023, and has also extended over $120 billion in loans to Latin America and the Caribbean since 2005.
Recently, the Trump administration announced a new round of global tariff policies, designating Argentina for a baseline tax rate of only 10%.
When asked if he discussed the possibility of further reducing tariffs to “zero tariffs” with Milei, Bessent responded, “Just like with other countries, I told him: you have to bring your A-game and show us what you can do before we can discuss the next steps.”
He highlighted that the current negotiations will cover tariffs, non-tariff trade barriers, currency manipulation, wage and facility subsidies. Bessent pointed out that the U.S. is swiftly negotiating with “key trading partners,” including Japan, South Korea, and Vietnam.
Furthermore, he emphasized that the country which completes negotiations first will enjoy a “first-mover advantage,” as the initial countries to reach agreements typically receive the best terms.
Bessent also noted that the relationship between the U.S. and China may not necessarily “decouple,” but stressed that China, unlike previous U.S. economic competitors, also poses a significant military threat, requiring a unique approach.
“The economic competitors we had in the past were also our military allies. However, China is not only our biggest economic competitor but also our biggest military adversary, which necessitates a distinct approach.”
Bessent concluded by outlining the three main pillars of the Trump administration’s economic strategy: tariff policies, tax reform, and financial and industrial deregulation.
He mentioned that while the focus has been on tariffs, tax reform is progressing rapidly, and deregulation will commence in the fall, exerting a robust impact on finance and the real economy.
Bessent urged markets and the media to “see the bigger picture” and expressed optimism about the unity within the Republican party, suggesting that fiscal policies would swiftly move forward.