Trump Intervenes in Argentina's Midterm Elections...Financial Aid Controversy [Current Affairs Show]

Ruling Party in Argentina Achieves Landslide Victory Thanks to Trump
Concerns Grow Over Potential U.S. Election Intervention as Needed

■ Broadcast: The Asia Business Daily 'So Jongseop's Current Affairs Show'

■ Host: Political Specialist So Jongseop

■ Director: Producer Park Sumin

■ Guest: Reporter Lee Hyunwoo

In Argentina's midterm elections, the ruling party, the Liberty Forward Party, achieved a sweeping victory, significantly strengthening President Javier Milei's position. However, the international community has been shocked by analyses suggesting that overt intervention by U.S. President Donald Trump played a decisive role in the election outcome.

The Liberty Forward Party transforms from a minority to a major party... Trump’s overt support

On the 27th of last month (local time), Argentine President Javier Milei is seen cheering after a landslide victory in the midterm elections. Photo by AP News Agency

In this midterm election, the Liberty Forward Party achieved a dramatic turnaround by winning 20 seats in the Senate and 100 seats in the House of Representatives. Previously, the Liberty Forward Party was a minor party, holding only 6 out of 72 Senate seats and 37 out of 257 seats in the House. However, with this election, the party far surpassed the minimum threshold of 86 seats required to exercise veto power over opposition legislation in the House, rapidly growing into a major political force.

This dramatic reversal was driven by President Trump's unprecedented election intervention. Just before the election, President Trump accepted Argentina’s request for a $20 billion currency swap and publicly promised $40 billion in financial support if the Liberty Forward Party won. It is considered an unprecedented and blatant case of election interference for a foreign head of state to promise massive financial support on the condition of a particular party's victory.

In fact, President Milei was facing the threat of a crushing defeat ahead of this election. Known as the 'Trump of South America,' Milei was elected on promises of government restructuring and drastic cost-cutting, symbolized by wielding a chainsaw at his inauguration. However, his aggressive austerity policies had fueled widespread public dissatisfaction. While inflation was brought under control, the economy sharply contracted, and welfare for vulnerable groups was significantly reduced, leading to public discontent. A series of corruption scandals involving his close aides further darkened the election outlook.

However, President Trump’s promise of massive financial support became a game changer. For Argentine voters suffering from an economic crisis, the prospect of U.S. financial aid sent a powerful message, completely overturning the election landscape. Within Argentina, the prevailing analysis is that "without the promise of U.S. financial support, the Liberty Forward Party would have suffered a crushing defeat."

However, this election intervention has sparked growing criticism both domestically and internationally. There are claims that using massive economic aid as leverage to influence election results constitutes a violation of sovereignty and an undermining of democracy. In particular, the United States has long criticized China and Russia for election interference, leading to accusations of double standards.

Military Pressure on Venezuela and Tariff Bomb on Brazil... Tensions Rise Across South America

Reuters Yonhap News

The Trump administration’s intervention in South America is not limited to Argentina. U.S. Navy aircraft carriers, destroyers, and amphibious units have been deployed off the coast of Venezuela. While the official reason is to combat drug trafficking fleets, this is widely interpreted as blatant military pressure on Venezuela. Even within the U.S. military, there is criticism that such a deployment is excessive, likened to "using a sledgehammer to crack a nut."

Against Brazil, a 50% tariff hike was imposed. After Jair Bolsonaro, the far-right former president with close ties to President Trump, was sentenced to 27 years in prison on coup charges, the Trump administration imposed retaliatory tariffs on Brazil, calling the sentence unjust. This excessive interference in domestic affairs has been criticized in the U.S. Congress, and even some Republican lawmakers opposed the move, leading to a congressional decision to repeal the tariffs. Nevertheless, the Trump administration continues its hardline approach toward South America.

Experts believe that the Trump administration’s intervention in South America is motivated by a desire to counter China. Since the 2010s, China has strengthened ties with left-leaning governments in Latin America and actively promoted the Belt and Road Initiative. There are concerns that if China’s influence expands into South America, which is considered the U.S.'s backyard, the United States could become isolated within the Americas.

In particular, if China signs port leasing or concession agreements with South American countries or builds naval bases in the Caribbean, it could pose a serious threat to U.S. security. This is why the Trump administration is taking a hardline stance against leftist regimes in South America and actively supporting the right-leaning Milei administration.

However, geopolitical considerations are not the only factor. Given President Trump's background as a businessman, it is highly likely that economic calculations regarding Argentina’s vast underground resources also played a role. Argentina is rich in uranium, lithium, rare earth elements, as well as oil and gas.

In particular, the country’s rare earth reserves are drawing attention. According to a 2022 survey by the Argentine Geological and Mining Service, confirmed rare earth reserves exceed 190,000 tons, and the total, including potential resources, is estimated at 3.3 million tons. The United States is desperate to secure alternative sources in case China cuts off rare earth supplies, and this quantity would be sufficient to meet much of the U.S. military’s demand for rare earths.

The United States is currently engaged in joint development of rare earths with Australia, Vietnam, and others, but most of these regions are in the Asia-Pacific, raising concerns about transportation to the U.S. in an emergency. In contrast, Argentina’s geographic proximity allows for rapid transport. Analysts believe that there is a strategic calculation to secure rare earth supply chains through the pro-U.S., anti-China Milei administration.

Does the U.S. intervene in elections as needed? ... Allies express concern

EPA Yonhap News

President Trump’s blatant election intervention is causing shock not only in South America but around the world. Earlier this year, Elon Musk’s public support for a far-right party in the German general election was controversial, but this time, the U.S. president himself has openly pledged financial aid in exchange for votes for a specific party, causing an even greater stir.

The United States has consistently condemned alleged election interference by Russia and China as a threat to democracy. Recently, the U.S. led international criticism when Russia dispatched agents to support pro-Russian candidates and distributed money in Moldova’s general elections, a country bordering Ukraine. For the United States to engage in similar actions as Russia is itself a major shock.

Countries around the world are increasingly worried that U.S. election intervention will not be limited to Argentina. Nations currently negotiating tariffs with the U.S. now fear they could face electoral retaliation if they do not comply with U.S. demands. For governments with anti-U.S. or pro-China leanings, there is concern that the United States may deliberately intervene in their elections to topple them. The international community is growing increasingly concerned that if the Trump administration continues to interfere in the internal affairs of other countries in this manner, diplomatic friction will inevitably increase and the very foundations of democracy will be undermined.