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Marcos Galperin, the CEO of MercadoLibre, which is often referred to as the “Amazon of Latin America,” has recently expressed optimism about the potential economic advantages for Latin America stemming from the ongoing trade tensions between the United States and China.
In an interview with CNBC during the Riverwood Capital Management’s LatAm Tech Forum held in Miami, Galperin stated, “If Latin America plays its cards well, I think it could benefit from this volatility.” His insights come as MercadoLibre, primarily involved in e-commerce and payment solutions, sees its stock price rise nearly 30% this year, in contrast to Amazon’s decline of 15% due to the impact of government tariffs imposed by President Donald Trump.
Galperin, who holds the title of Argentina’s wealthiest individual with a fortune estimated at $8.7 billion according to Forbes, pointed out that Latin American firms, particularly those based in Mexico, are likely to benefit from the shifts in trade dynamics triggered by U.S.-China tensions. He emphasized that numerous American companies have begun relocating their manufacturing from China to Mexico, capitalizing on the region’s more favorable trade agreements.
Specifically, Mexico’s free trade agreement with the United States allows certain goods to be imported without facing the significant tariffs that have been placed on products from China, which can reach a staggering 145%.
A Shift in Trade Dynamics
Galperin anticipates a long-lasting change in U.S.-China trade relations, suggesting that the previous model—where the U.S. imported massive quantities of goods from China—might be approaching its conclusion. “I don’t know how it’s going to end,” he remarked, but he believes the established economic relationship is evolving.
In the context of Argentina, Galperin has noted the country’s historically protectionist policies, characterized by high tariffs. However, under the leadership of the newly inaugurated president, Javier Milei, there have been significant cuts to tariffs and import restrictions. Galperin stated, “I think what Milei is doing is great for Argentina,” highlighting the potential benefits of adopting free-market reforms.
While he remains hopeful about these changes, Galperin also cautioned that the country may face challenges as it adjusts to these new policies. He expressed a desire for patience from the public as the country navigates the transition: “Changes are painful, and I hope that people have the patience and the time to give him to see that these changes in the medium and long term really create benefits for everyone.”
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