By John Meyer, consultant in financial affairs – Eurasia Business News, October 22, 2025. Article No 1850

The U.S. government under President Donald Trump is actively trying to reduce China’s influence over Argentina by leveraging financial and strategic tools. The administration is urging Argentine officials to limit China’s access to essential natural resources, especially lithium and other critical minerals, which are abundant in Argentina. This effort coincides with the U.S. and Wall Street banks discussing a substantial financial aid package—about $40 billion—for Argentina’s struggling economy, including a $20 billion currency swap agreement signed recently.

Treasury Secretary Scott Bessent has engaged in talks with Argentine officials to increase U.S. access to Argentina’s uranium reserves and to counter China’s sway in the region.

The U.S. administration has undertaken unprecedented measures, including unilateral foreign exchange interventions to support the Argentine peso, signaling a strategic move not just to stabilize Argentina but also to limit Beijing’s growing presence. Politically, the aid is linked to support for Argentine President Javier Milei, seen as a conservative ally of Trump in a region where U.S.-China competition is intense.

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This approach has stirred political controversy within Argentina, with significant opposition accusing the U.S. of interference and colonialism. Critics worry about U.S. influence directing Argentina’s economy and domestic affairs amid an ongoing economic crisis.

Nonetheless, the U.S. strategy appears focused on weakening China’s foothold in Argentina by tying financial support to policy alignment and resource access, illustrating a clear geopolitical effort to drive a wedge between Argentina and China.

Argentina’s gold reserves were reported at approximately 61.74 tonnes as of the second quarter of 2025. This level has remained stable compared to previous quarters in 2025. In terms of value, Argentina’s gold reserves were reported to be worth about 5.573 billion USD as of January 2025, marking a slight increase from the previous month.

Argentina’s GDP in 2025 is projected to grow by approximately 5.2%–5.5% according to major institutions, with nominal GDP estimates ranging from about $683 billion (nominal) to $1.8 trillion (PPP) for the year.

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© Copyright 2025 – Eurasia Business News. Article no. 1850