Why Trump Reaches Out to Argentina: "The Real Motive Is Securing Key Minerals"

"Beyond Ideological Affinity, Geopolitical Motives at Play"

Recently, the Donald Trump administration in the United States has taken a friendly approach toward Argentina, including signing a currency swap agreement worth 20 billion dollars. Analysts say this is not merely a diplomatic gesture, but rather a strategic move aimed at securing Argentina's key minerals and countering China.

Javier Milei, President of Argentina (left), and Donald Trump, President of the United States. Photo by Reuters Yonhap News

On the 12th (local time), the Argentine daily La Nacion reported that the Trump administration's strong support for President Javier Milei of Argentina goes beyond personal or ideological affinity and is rooted in the United States' geopolitical strategy toward Latin America and China. The report specifically analyzed that the goal is to reclaim influence in Latin America that China has expanded over the past 25 years, and to use Argentina-now virtually the only remaining ally in the region-as a "testing ground."

La Nacion pointed out that there are practical business interests behind this. President Trump and U.S. Treasury Secretary Scott Besant are eyeing Argentina's energy and mineral resources, seeking major investment opportunities in uranium, lithium, rare earth elements, and advanced technology sectors. Previously, Secretary Besant stated in an interview with Fox News on the 9th that "Argentina will exclude China and open its doors to U.S. private companies in key sectors such as rare earth elements and uranium."

La Nacion also reported that the United States raised the issue of stable governance as a condition for supporting the Milei administration. In this regard, Barry Bennett, an advisor to the Trump administration, visited Argentina twice to directly assess whether President Milei could continue to maintain control over state affairs after the midterm elections. Since the rights to develop strategic minerals in Argentina are held by provincial governments rather than the federal government under the Argentine constitution, the Trump administration appears to hope that the Milei administration will restore amicable relations with provincial governors, win the midterm elections, and secure provincial cooperation for large-scale U.S. investments thereafter.

Presidents Trump and Milei are scheduled to hold an official bilateral summit at the White House on the 14th. Local media outlet Ambito reported, "There are expectations that this summit will lead to the announcement of a trade agreement," adding that "there is a possibility that measures to lower tariffs on about 100 items will be formalized."