U.S. and Argentina: From Historical Economic Incompatibility to Compatibility

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In recent months, we have written—and it has been written and spoken—a great number of times about the strong political alliance that has been established between the administrations of President Milei and President Trump, for both political and ideological reasons, and also, and especially, for geopolitical factors that go beyond the short and medium term.

Washington’s decision—both at the level of permanent agencies and its political leadership—to once again give central importance to its influence and weight in the American hemisphere vis-à-vis Chinese penetration undoubtedly stands out when looking for explanations.

It was no coincidence that shortly after taking office, Trump placed topics such as the Panama Canal and Greenland at the forefront of his second term, as well as making it clear that the Venezuelan dictatorship must come to an end.

Not to mention the punitive tariffs of 40 percent on Lula III’s Brazil due to its marriage with the Supreme Court in the processes against U.S. opponents and businessmen.

As well as the withdrawal of visas from most of the court’s judges and two of the cabinet ministers of the PT leader.

For now, last week’s meeting and the photo of Lula and Trump have not altered those tariff penalties. The Brazilian president and his team stated that they have no influence over the Supreme Court.

Trump and, especially, Rubio, in his dual role as Secretary of State and National Security Advisor, do not seem to believe him.

Congratulations to President @JMilei on La Libertad Avanza’s very successful midterm election. President Milei has a renewed mandate for change.

Argentina is a vital ally in Latin America. These results are a clear example that the Trump Administration policy of Peace through… pic.twitter.com/tjcciFSkxG

— Treasury Secretary Scott Bessent (@SecScottBessent) October 27, 2025

The fact that more than two-thirds of the judges in that body were appointed by Lula, and that the most recent addition was the personal attorney of the Brazilian president and, until a few months ago, his Minister of Justice, leaves ample room for skepticism.

We should also mention the cancellation of visas for Petro and part of his team in Colombia.

Needless to say, the largest military deployment in decades in the Caribbean, focused on Venezuela, and the authorization for intelligence to operate on a large scale in the entrails of the regime are the most forceful demonstrations of everything mentioned at the level of “sticks.”

If we speak of “carrots,” Argentina is the center of attention. The $20 billion swap, the $2 billion intervention in the exchange market, and the upcoming announcement of tariff benefits are part of that forceful menu. But let us now return to the core of the title of this article.

There is little doubt that any Argentine who has been fortunate enough to receive a good education in history and economics during their school and/or university years remembers well the various analyses of the serious consequences that the end of British hegemony after the First World War—and the rise of the United States as the world’s main power after 1918 and even more so after 1945—had on Argentina.

.@POTUS @realDonaldTrump’s America First economic agenda has already provided over $2 trillion in tax cuts for middle class Americans, lower taxes and less red tape for small businesses, and the strength on the world stage to both counter our adversaries and support our allies.…

— Treasury Secretary Scott Bessent (@SecScottBessent) October 21, 2025

Unlike the United Kingdom, the new hegemon did not need our meat and cereals, which it produced on an infinitely larger scale. Perhaps one of the most important processes—and for now, not sufficiently observed or analyzed—is that this factual reality of the last 80 to 90 years appears to be beginning to change.

Step by step, Argentina is beginning to be viewed as a growing source of energy, such as gas and oil, minerals such as lithium, and, in the near future, copper and rare earths.

Not to mention cold regions with available energy for the establishment of artificial intelligence hubs. It is also being seen as a strategic point for future exploitation of Antarctica and safe passage through the straits that connect the Atlantic and the Pacific.

In other words, the rapprochement between the United States and Argentina is destined to have deeper roots than personal and ideological affinities between their leaders and considerations of national security. Market forces and supply and demand are called to play a central role.

Perhaps in the not-too-distant future, Argentine history manuals and textbooks will have to add a new and relevant chapter to their analyses and descriptions.

For at least 50 years, Argentines—regardless of ideology or religion—have sought refuge in the dollar as a savings currency and for the purchase of real estate and cars, as well as for investments. The second language taught in schools across various social levels is English.

Our young people—and not so young people—spend a substantial part of their lives on social networks and platforms originating in the United States. Not to mention smartphones and tablets. In other words, Argentines of every political spectrum have a silent and individual alliance with the United States. Perhaps it is time for foreign policy and political leadership to assume this reality beyond the rhetorical fireworks.

Fabián Calle, Senior Fellow, MSI²

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Originally published by the Miami Strategic Intelligence Institute, a nonpartisan and conservative group of experts specializing in policy research, strategic intelligence, and consulting. The opinions are those of the author and do not necessarily reflect the position of the Institute. More information about the Miami Strategic Intelligence Institute is available at www.miastrategicintel.com

The views expressed in this article are those of the author and do not necessarily represent the official position of Gateway Hispanic.

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