Argentine President Javier Milei’s sweeping victory in Sunday’s legislative elections has strengthened both his domestic mandate and his alliance with Washington—delivering a high-profile win for U.S. President Donald Trump’s foreign policy vision.
According to The Hill, Milei’s Liberty Advance coalition captured more than 40 percent of the national vote, far exceeding expectations and solidifying the libertarian leader’s grip on Congress.
Speaking aboard Air Force One, Trump called Milei’s victory “a great thing for Argentina.”
“He’s a great winner who received a lot of help from us—very strong help,” Trump told reporters. “People thought he couldn’t win, but he not only won—he won big.”
Milei’s bloc secured 64 of 127 seats in the lower house and 13 of 24 in the upper chamber—enough to prevent opposition lawmakers from overriding presidential vetoes.
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The result sent Argentina’s dollar bonds maturing in 2035 soaring by more than 13 cents to 70.34 cents on the dollar, the highest level on record. “We made a lot from that election because the bonds and ratings went up,” Trump said with a grin. “But we didn’t do it for the money.”
The U.S. Treasury has finalized a $20 billion currency-swap agreement with Buenos Aires and plans an additional $20 billion in financing through sovereign funds and private banks.
Treasury Secretary Scott Bessent congratulated Milei, saying the outcome “proves that President Trump’s strategy of promoting peace through economic strength is working.”
“We look forward to Argentina advancing economic freedom, attracting investment, creating jobs, and delivering prosperity to its people,” Bessent said, adding that “under President Trump’s leadership, U.S.–Argentina relations have never been stronger.”
Following the announcement, Argentina’s stock and bond markets surged. The Merval index jumped 22 percent, government bond yields fell sharply, and the peso strengthened by as much as 10 percent against the dollar. Economists at JPMorgan said the landslide “restored investor confidence and halted the peso’s slide.”
Milei consolidates market and political momentum
Since taking office in late 2023, Milei has slashed public spending and pushed sweeping free-market reforms to curb runaway inflation. Sunday’s results give him fresh political capital and a secure one-third bloc in Congress, limiting the opposition’s ability to obstruct his agenda.
Alejo Czerwonko, UBS’s chief investment officer for emerging markets in the Americas, noted that Milei will still need centrist allies to pass major legislation. Alberto Ramos, Goldman Sachs’ head of Latin American economics, said the victory “gives the Milei administration renewed legitimacy and political capital,” reinforcing expectations of continued U.S. fiscal support.
On social media, Milei thanked Trump—calling him “a great friend of the Argentine Republic”—and declared that the two nations “should never cease to be allies.”
“Our people yearn for freedom,” he wrote. “I will fight for Western civilization.”
He ended the post with “MAGA,” flanked by Argentine and U.S. flag emojis.
Despite the market euphoria, analysts warn that Argentina’s structural problems remain. Mauricio Monge, senior economist at Oxford Economics, cautioned: “Stock gains don’t mean Argentina’s troubles are over. The peso is still overvalued, and fiscal reform remains essential.”
Still, he added, Milei “now has a real opportunity to deliver those reforms with a stronger mandate and solid backing from Washington.”
