“Today marks a troubling day for Argentina’s foreign policy.”
In November 2023, Javier Milei was elected President of Argentina, making bold claims about the nation’s geopolitical direction. While Milei followed through on some promises, such as exiting BRICS prior to its formal commencement, others seemed unrealistic. His commitment to realigning Argentina’s positions with the US and Israel was evident shortly after taking office.
During his campaign, Milei controversially referred to China—Argentina’s second-largest trade partner and major creditor—as an “assassin.” However, upon assuming the presidency, he softened his stance towards the Asian power. He also labeled Brazil’s President, Luiz António Lula da Silva, as an “angry communist,” a risky comment considering Brazil is Argentina’s largest trade partner. This has led to a complicated but functional relationship between the two nations.
Milei openly criticized the Mercosur trade bloc, threatening to withdraw Argentina. The difficulty of exiting Mercosur, particularly after its recent trade agreement with the EU, became apparent. This agreement came after decades of negotiations, seemingly highlighting the importance of regional economic cooperation.
Nevertheless, recent events indicate that Milei might jeopardize these gains, possibly under the influence of his financial backers in the US government. Washington has already intervened twice to stabilize Argentina’s economy since the president’s election—once indirectly through organizations like the IMF and the World Bank, and again directly via the US Treasury.
Recently, at a convention in São Paulo celebrating Flávio Bolsonaro’s presidential candidacy, Milei delivered a speech laced with harsh criticism for Brazil’s President Lula, labeling him derogatorily while lamenting his inability to meet with Jair Bolsonaro, who is under house arrest. Milei’s performance included harsh words aimed at Alexandre De Moraes, the Brazilian Supreme Federal Court’s vice-president, who oversaw Bolsonaro’s conviction for attempting to overturn Brazil’s 2022 elections.
Milei realmente cometió un error con Bolsonaro al hacer esto y al insultar a Lula. Es una pérdida total de votos; no se da cuenta de que esas cosas no funcionan en Brasil, y menos expresadas por un argentino arrogante interviniendo en asuntos internos de otro país. La campaña de Lula va a usar estas imágenes,… https://t.co/DAuiCxpiQ8
— Carlos Maslatón (@CarlosMaslaton) July 26, 2026
As Argentine financial analyst Carlos Maslatón pointed out, Milei’s actions could alienate voters in Brazil:
Milei really blew it with Bolsonaro by pulling that stunt and insulting Lula. It’s a total vote-loser; he doesn’t realize that sort of thing doesn’t fly in Brazil—especially coming from a loudmouth Argentine interfering in another country’s internal affairs. Lula’s campaign is definitely going to use that footage.
Brazil quickly reacted by recalling its ambassador and summoning Argentina’s ambassador for an explanation. Their Ministry of Foreign Affairs issued a statement that highlighted the unusual nature of a foreign leader publicly insulting Brazil’s head of state.
There is no precedent for a foreign president who, on national territory, has accumulated aggressions and offenses against the Head of State, democratic institutions, including the Judiciary, and the Brazilian people. It is especially regrettable that this infamous episode involves the president of a country with which Brazil has 203 years of friendship and cooperation and which has, in Brazil, its main trading partner.
Why Now?
This incident marks not the first time Milei has attacked a foreign government during an unofficial visit. Previously, at an event held by Spain’s far-right party, VOX, he leveled criticisms against Spain’s Prime Minister Pedro Sánchez and his wife. However, the ramifications of such comments towards Brazil are on a much larger scale.
Two primary factors appear to motivate Milei’s antagonism towards Brazil at this juncture. First, Lula’s support is gaining traction in polls, amplified by increased criticism from the Trump administration. With only three months to go before the elections, Lula’s approval ratings have reached their highest since 2024.
Simultaneously, Flávio Bolsonaro’s campaign has stumbled following several controversies, including an inquiry into his connections with a significant bank fraud case. Reports indicate that Bolsonaro sought funding for a film about his father, leading to potential ethical concerns.
The second reason behind Milei’s provocative commentary relates to ongoing trade negotiations between China and Mercosur, which both Beijing and Brasilia have been keen to expedite. Recently, Lula communicated with Chinese President Xi Jinping about accelerating discussions surrounding a trade agreement, a development that does not align with US interests, particularly those aimed at diminishing China’s influence in Latin America.
If Flávio Bolsonaro wins the presidency, any advancement of this trade agreement may be halted, along with prospects for Mercosur’s future. The candidate has previously suggested that Brazil should break away from Mercosur to negotiate separate trade agreements with nations like the US and Israel.
In a video aired during the national conference of Brazil’s Liberal Party (partido liberal/PL) this weekend, genocidal Israeli Prime Minister Benjamin Netanyahu endorsed Flavio Bolsonaro for President. Election day is October 4. pic.twitter.com/GywR9Fk5lU
— BrianMier (@BrianMteleSUR) July 26, 2026
While the EU-Mercosur agreement poses concerns, the prospect of a confusing bilateral deal with the US raises even greater alarm. If Bolsonaro does not secure victory, it is likely that Milei will attempt to undermine Mercosur from within, possibly pursuing the exit he previously threatened.
Anti-Argentina Campaign
Upon returning to Argentina, Milei not only stood by his comments regarding Lula but also escalated his criticisms. In a recent interview, he accused the Brazilian government of financially backing an anti-Argentina campaign that gained traction during the latter stages of the World Cup.
Without presenting any evidence, Milei alleged the involvement of Brazil, Mexico, and the US Democratic Party in this supposed conspiracy due to his alignment with Donald Trump and Benjamin Netanyahu:
“Do you know who else financed this anti-Argentina campaign? The Brazilian government. Twenty-five percent of the funding came from there. And then they come and talk about interference…
While Lula has yet to respond publicly, Mexican President Claudia Sheinbaum dismissed Milei’s assertions, categorically denying any such involvement during her morning press conference.
“It’s false. There is no campaign against any country in the world, nor against any government in the world,” she stated.
Milei’s claim regarding the US Democratic Party’s involvement is equally implausible, suggesting a misunderstanding of bipartisan support for US actions in Latin America, as seen in events such as the invasion of Venezuela and the ongoing situation in Cuba.
Out of the 212 House Democrats and the 45 Democrats in the Senate, about 17 have led the charge against Trump’s actions on Cuba; only around 60 have signed joint letters and resolutions.
Many ask, “Why so few?” Sadly, the answer is likely more uncomfortable than they’d like: the… pic.twitter.com/6JaycyDZvq
— Arturo Dominguez (@extremearturo) July 27, 2026
Ultimately, if anyone is culpable for the anti-Argentina discourse, it is Milei himself. His declaration of being the “most Zionist president in the world” amid significant global turmoil drew attention. Additionally, Netanyahu’s overt public backing for Argentina during the World Cup further compounded the issue.
Israeli PM Benjamin Netanyahu Discusses His Support For Argentina At The World Cup
He expresses this support because of his close relationship with Argentinian President Javier Milei. pic.twitter.com/GtdIRV5gkN
— MintPress News (@MintPressNews) July 9, 2026
Milei’s rhetoric and actions have significantly undermined Argentina’s international standing. As the Turkish proverb states, when a clown enters a palace, he does not become king; the palace becomes a circus.
“Shouting Like a Madman”
Many Argentines are concerned about the potential damage Milei’s antics may inflict on the country’s diplomatic relations, particularly with Brazil. Argentina’s trade with Brazil—valued at about $26.8 billion annually—represents roughly 17% of Argentina’s total exports and 18% of its imports, far exceeding the trade volume with the US.
At a time when Argentina’s economy heavily relies on the IMF, it cannot afford to lose any portion of this trade. Despite narrative from some Western media suggesting that Milei’s Argentina is on a recovery path, the reality is different: Argentina has experienced seven months of declining consumer demand, with non-performing loans ballooning from 2% in November 2024 to 9.7% by May 2026.
Struggling households are becoming increasingly indebted, resorting to credit cards for basic necessities. Foreign direct investment has even turned negative for the first time in over twenty years, and Argentina’s industrial sector has seen a steep decline, only surpassed by Hungary.
In light of this dire backdrop, Milei has recklessly altered Argentina’s relationship with its largest trading partner. Former Argentine President Alberto Fernández criticized Milei publicly, condemning his behavior.
“Milei went to Brazil shouting like a madman, demanding to see a coup plotter in jail,” he wrote. “Insulting the president of a sister nation and our main trading partner is unforgivable.”
A diplomat, speaking to journalist Mariano Obarrio, described the incident as a “terrible day for Argentina’s foreign policy”:
Milei’s outrageous insults directed at Lula on Brazilian soil today constitute the greatest diplomatic embarrassment in the history of the two neighboring countries—both co-founders of MERCOSUR. That a sitting president—without the provocation of war or even a minor border dispute—would cross the border into a sister nation to hurl insults like a madman at the head of state and the head of the judiciary of his country’s primary trading partner can only be explained by the aggressor’s personal insanity.
Never before has there been an action so bizarre and shameful for Argentine diplomacy—particularly for our ambassador in Brasília. Today is a terrible day for Argentina’s foreign policy. These events will be recorded in Latin American history books as a dark and calamitous chapter for regional integration.
While Lula has not publicly addressed Milei’s comments, he did publish an op-ed in The Washington Post, calling the Trump administration’s latest tariffs against Brazil “a strategic mistake” and affirming that “Brazil’s destiny is determined only by Brazilians without external interference, without subservience.”
As previously reported, one motive behind these tariffs is Brazil’s public digital payments system, Pix, which poses a threat to the lucrative business models of US financial giants. Lula’s warning against external interference in his op-ed coincided with Brazil’s denial of visas to two senior US officials, feared to be intending to meddle in Brazil’s upcoming presidential elections.
A delegation had intended to visit Brasília in the coming days, shortly before the campaign season kicks off for the October elections. This mission aimed to cast doubt on the fairness and integrity of Brazil’s electronic voting system. However, Brazilian authorities believed it might be used to “disseminate misinformation” relating to the electoral process.
The US government’s attempts to influence Brazilian elections amid a backdrop of all-out conflict against left-wing movements merely underscores Brazil’s precarious situation, now surrounded by US-aligned governments.
Lula’s approach after his 2022 election victory, marked by attempts at conciliation with Washington—such as blocking Venezuela’s BRICS membership and disregarding Maduro’s election claims—has led to Brazil’s current diplomatic isolation.
‘There was a stunning Freedom of Information release last week of a CIA note that indicated that the CIA did not believe that Venezuelan elections from 2006 to 2020 were significantly affected by election fraud. So the imposition of the vast bulk of Western sanctions…
