A member of President Trump's Cabinet inadvertently exposed a "highly unfortunate" trade situation concerning American soybean farmers.
A journalist for the Associated Press snapped a photograph of Treasury Secretary Scott Bessent reading texts on his phone, with the messages clearly legible, while Bessent was at the United Nations General Assembly, the Daily Mail reports.
In the messages, Agriculture Secretary Brooke Rollins laments a "highly unfortunate" turn of events after the U.S. offered to bail out Argentina, whose president, Javier Milei, is a Trump ally.
“Just a heads up. I am getting more intel, but this is highly unfortunate. We bailed out Argentina yesterday and in return, Argentina removed their export tariffs on grains, reducing their price to China at a time when we would normally be selling to China,” the text message read.
“Soy prices are dropping further because of it. This gives China more leverage on us,” it continued. “On a plane but scott I can call you when I land.”
Argentina temporarily dropped its export taxes on grains last week, a move that undercut American farmers right at the start of the harvest season, as China snapped up cargoes of Argentina's crops.
Argentina's selloff came after Bessent announced a $20 billion financial lifeline to support Argentina's economy as Milei faces midterm elections in October.
“These options may include, but are not limited to, swap lines, direct currency purchases, and purchases of U.S. dollar-denominated government debt from Treasury’s Exchange Stabilization Fund,” Bessent said in a social media post.
“Opportunities for private investment remain expansive, and Argentina will be Great Again.”
Bessent is known for being a smooth communicator and defender of Trump's trade policies, but the leak of Bessent's texts has caught the White House off guard as members of Trump's base, including farmers, revolt over the proposed bailout of a foreign country.
Midwestern farmers are under significant pressure from Trump's trade war, as China snubs American farmers to purchase soybeans from South America instead. Trump has floated helping distressed farmers using revenue from his tariffs, which have generated over $200 billion.
The administration's desire to help Argentina stems from Trump's personal and ideological alliance with Milei, a hardline capitalist who received Trump's endorsement at the UN.
It remains to be seen how Trump will balance his desire to help a right-wing ally overseas with his pledge to put the American people first.
In any case, Trump is meeting with Milei in two weeks, Argentina said Tuesday.
