PALM BEACH, Florida, June 2, 2025 (AP) — President Javier Milei and former President Donald Trump announced a $500 million U.S. defense credit line for Argentina on Monday, capping a three-day visit to the United States that underscored Milei's deepening ties to the American right and his willingness to prioritize ideological alignment over traditional diplomatic neutrality.
The agreement, signed at Trump's Mar-a-Lago estate in a ceremony that lasted 40 minutes, will allow Argentina to purchase U.S.-made military equipment, including six Black Hawk helicopters and three coastal patrol vessels, on favorable financing terms over 10 years at 3.2% interest. The Pentagon said the deal also includes expanded intelligence-sharing cooperation on counter-narcotics operations in the Triple Frontier region where Argentina, Brazil, and Paraguay meet, a zone that U.S. officials have long identified as a hub for drug trafficking and money laundering.
Trump praised Milei after a 90-minute private meeting, telling reporters that Argentina is "back as a serious player" and that Milei is "doing things nobody thought possible."
Milei's trip began Friday in Washington, where he met with Republican senators Marco Rubio of Florida, J.D. Vance of Ohio, and Ted Cruz of Texas to discuss a proposed Trade and Investment Framework Agreement (TIFA) that could reduce tariffs on Argentine agricultural exports. He then traveled to Austin, Texas, for a closed-door dinner with Elon Musk at Tesla headquarters to discuss lithium supply chains and potential Tesla investment in Argentina's Catamarca province, which holds the world's third-largest lithium reserves.
A senior Argentine official who attended the Musk meeting, speaking on condition of anonymity, said Musk expressed serious interest in securing Argentine lithium for Tesla's battery supply chain. No deal was signed, but both sides agreed to technical teams meeting in Buenos Aires next month.
The Biden administration, which has maintained a more cautious posture toward Milei, issued a terse statement through the State Department welcoming "any agreement that strengthens regional security cooperation" but noting that the defense credit line had been under review since 2023 and was not a new initiative.
Milei's alignment with the American right has drawn sharp criticism at home. Buenos Aires Governor Axel Kicillof called the trip "an embarrassment" and accused Milei of "campaigning for a foreign politician instead of governing Argentina." Peronist Senator Mariano Recalde demanded that Milei report to Congress on what concessions were made to secure the credit line.
Analysts said the trip served multiple purposes: securing concrete economic and security benefits, positioning Argentina as a key U.S. partner in South America at a time of growing Chinese influence, and rallying Milei's domestic base ahead of October's midterm elections.
Political columnist Carlos Pagni noted that Milei doesn't see foreign policy as separate from domestic politics, and that every photo with Trump is worth votes in Buenos Aires Province, where Milei's base loves that he drives the opposition crazy.
