Trump to meet with Argentina’s Milei as soy sales could stymie $20 billion deal

President Donald Trump will meet with his Argentine counterpart Javier Milei in two weeks, Argentina said on Tuesday, as Milei seeks to clinch a credit swap line from the U.S. that has rankled some Republicans as the South American nation offloaded billions of dollars in soy to China. 

The two will meet at the White House on October 14, during the week the World Bank and the International Monetary Fund (IMF) are set to convene in Washington.

The Argentine foreign ministry called the meeting a "new opportunity to continue strengthening the strategic partnership between both countries."

U.S. Treasury Secretary Scott Bessent last week announced negotiations for a $20 billion swap line with Argentina's central bank, which would provide access to much-needed dollars.

Argentina's dollar bond prices and the peso rallied last week in the aftermath of Bessent's announcement, and have fallen since - partly on the lack of details of the pledged U.S. support. On Tuesday bonds were flat to down 2 cents each, while the peso weakened 1.5%.

Libertarian Milei's chainsaw-style austerity drive has helped address decades of solvency issues, but concerns over a cashflow crunch have persisted and analysts say October's mid-term elections could put his gains at risk.

The U.S. backing seems to have caused outcry among Trump's inner circle. The Associated Press last week captured an image of Bessent reading a text message appearing to be from Secretary of Agriculture Brooke Rollins, which called the deal unfortunate.

"We bailed out Argentina ... and in return, the (Argentines) removed 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," showed the message from a contact that appeared as "BR."

Bessent and Rollins have not publicly commented on the text exchange, and their offices did not immediately respond to a Reuters request for comment.

In another bid to secure foreign currency and calm market jitters ahead of the midterms, Argentina's government temporarily suspended export taxes on grains last week, with traders booking $7 billion in sales in just a few days.

Most of those cargoes, particularly of soybeans, will be headed for China, according to traders. 

The deals are a blow to U.S. farmers, who are missing out on billions of dollars of sales halfway through their prime marketing season as unresolved trade talks between Washington and Beijing freeze exports and South American suppliers step in to fill the gap.