Treasury Secretary Scott Bessent recently discussed the contrasting U.S. positions on Canada and Argentina amid ongoing trade tensions and economic assistance efforts. His remarks, made during an interview on NBC’s Meet the Press, highlighted President Trump’s trade war with Canada and the proposed currency swap with Argentina.
Bessent Labels Canada Ad as ‘Psy-Ops’
Bessent responded to President Trump’s decision to impose a 10% tariff on Canada, triggered by an anti-tariff advertisement aired by Ontario’s government. He characterized the ad as “propaganda” and referred to it as a form of psychological operations, or “psy-ops.” This ad featured critiques of tariffs from former President Ronald Reagan.
- Ontario’s premier plans to take down the ad after the World Series.
- Trump deemed the advertisement a “misrepresentation of the facts.”
- The Supreme Court will hear arguments regarding tariff implementation on November 5.
Following the airing of the advertisement, Trump canceled talks with Canada, suggesting the ad aimed to influence a crucial legal decision. The Canadian prime minister’s office has not yet responded to requests for comment on the situation.
U.S. Support for Argentina’s Currency
In contrast to the situation with Canada, Bessent defended the U.S. decision to extend a $20 billion currency swap line to Argentina. This support is intended to stabilize Argentina’s peso, which has faced significant devaluation. While some U.S. lawmakers, including Rep. Marjorie Taylor Greene, criticized this assistance as contrary to the ‘America First’ agenda, Bessent maintained that it supports a U.S. ally.
- The funds for the swap line come from the Treasury’s Exchange Stabilization Fund, which has historically not incurred losses.
- Bessent assured there will be no tax burden on American taxpayers as a result of this transaction.
Despite these reassurances, experts worry about the effectiveness of U.S. currency interventions, as Wall Street predicts an imminent devaluation of the peso following Argentina’s midterm elections on Sunday. Questions remain about the repayment of U.S. assistance under the current administration of President Javier Milei, who has garnered support from conservative factions in the U.S.
Preventing a Failed State in Latin America
Bessent stressed that the U.S. is keen to prevent another potential failed state in Latin America, likening the situation to Venezuela. He indicated that bolstering friendly governments is preferable to more aggressive measures, such as military interventions against drug trafficking.
His comments reflect a wider U.S. strategic aim to stabilize Latin American nations, such as Bolivia, Ecuador, and Paraguay, which are also looking for economic support. Bessent believes that proactive economic measures are critical to maintaining regional stability.
