The US Is Pushing a Bailout for Argentina While American Farmers Struggle
President Donald Trump is bailing out Argentine President Javier Milei’s government to the tune of $20 billion. The bailout is coming under scrutiny after Argentina and China struck a deal on soybeans.
It is a complicated issue with several twists and turns. However, the decision has drawn criticism from both American farmers and elected officials. Here’s how the federal government struck a deal with Argentina that seems to be backfiring against the American farmer.
The United States government is bailing out Argentina
The United States is preparing a $20 billion bailout for Argentina, which is facing its own economic troubles. The proposed funding was announced in late September and was confirmed by Treasury Secretary Scott Bessent on Oct. 2, 2025. The announcement is drawing fierce bipartisan criticism. Some conservatives argue that it runs counter to the promised “America First” agenda.
A group of Senate Democrats called on the Trump administration to reconsider sending money to Argentina. The letter highlights how the bailout to Argentina is not only working against the United States as a whole, but also how it directly impacts farmers. The heart of the argument is how Argentina and China made moves after the funding was announced to intentionally undercut American farmers.
“Immediately following your Administration’s announcement regarding potential U.S. financial support for Argentina, Argentina suspended export taxes on soybeans, corn, wheat, and other agricultural commodities,” reads the letter. “Argentina’s policy change had immediate consequences for American farmers.”
The bailout announcement coincided with Argentina and China making a deal on soybeans. Argentina, in a move that undermines American farmers, eased restrictions on agricultural exports and lowered the price of grains. China, which has not bought any American soybeans this year, turned to Argentina and purchased shiploads of soybeans to replace American-grown products.
American soybean farmers are suffering the consequences of President Trump’s tariffs war
The U.S. has long been the No. 1 exporter of soybeans to China. President Trump has been attempting to leverage tariffs on international goods to fix what he long claimed to be imbalances with trade partners. The result has been retaliatory tariffs placed on American-made goods from long-standing trade allies.
China has been a big focus of Trump’s tariff war. In response, China implemented its own tariffs on American soybeans. This has left American farmers with soybeans they can’t sell and are facing bankruptcy.
“Why would USA help bail out Argentina while they take American soybean producers’ biggest market???” Senator Chuck Grassley (R-IA), wrote on X (formerly Twitter). “We should use leverage at every turn to help hurting farm economy. Family farmers should be top of mind in negotiations by representatives of USA.”
Leaked texts to Sec. Bessent shows panic from the Trump administration about the China-Argentina deal. An Associated Press reporter managed to get a photo of text messages from Agriculture Secretary Brooke Rollins sounding the alarm to Sec. Bessent.
“Finally—just a heads up, I’m getting more intel, but this is highly unfortunate,” the text reads. “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.”
The bailout comes during elections in the South American country
Argentine President Milei’s government is facing strong headwinds ahead of the country’s midterm election this month. The bailout for Argentina is being criticized as a form of election interference, something the U.S. loves to do in Latin America.
“It is unclear why you are choosing to use taxpayer dollars to bolster the reelection campaign of a foreign president while they take steps to undermine U.S. farmers,” reads the letter from Senate Democrats. “As the American Soybean Association put it last week: ‘U.S. soybean prices are falling; harvest is underway; and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina.’”
The federal government is currently shut down due to an impasse between Republicans and Democrats over healthcare funding. Democrats want to extend healthcare subsidies from the Affordable Care Act to keep premiums low and reverse Medicaid cuts. Republicans refused to compromise and help bolster Americans’ access to affordable healthcare. Sec. Bessent’s statement makes it seem that the administration will deem the bailout for Argentina essential.
