MercadoLibre and the Trade Landscape

Marcos Galperin, the CEO of MercadoLibre—often referred to as the “Amazon of Latin America”—has expressed optimism regarding the economic landscape of Latin America in light of the ongoing trade conflict between the United States and China. Speaking to CNBC at the Riverwood Capital Management’s LatAm Tech Forum in Miami, Galperin highlighted the potential advantages for the region.

Latin America’s Competitive Advantage

As tensions escalate between the U.S. and China, Galperin believes that Latin America could emerge as a beneficiary of this volatility. “If Latin America plays its cards well, I think it could benefit from this volatility,” he stated.

With a fortune estimated at $8.7 billion by Forbes, Galperin’s insights carry weight, particularly as MercadoLibre’s stock has risen nearly 30% this year—contrasting with Amazon’s decline of 15% amidst the trade turmoil.

The Strategic Role of Mexico

Galperin pointed out that Mexico, in particular, is positioned to gain significantly from the shifting trade dynamics. Many U.S. companies have relocated their manufacturing facilities from China to Mexico, partly due to Mexico’s free trade agreement with the United States which exempts several imports from potential tariffs.

In contrast, President Trump’s tariffs on Chinese goods can be as high as 145%, creating a challenging environment for companies reliant on Chinese manufacturing.

Anticipating Changes in Trade Relations

According to Galperin, the current state of U.S.-China trade relations indicates a potential permanent shift. He remarked, “I don’t know how it’s going to end, but I think the situation where everything was manufactured in China and was consumed in the U.S. […] is kind of over.”

Economic Reforms in Argentina

In his reflections on Argentina’s economic policies, Galperin pointed out recent initiatives by President Javier Milei to reduce tariffs and import restrictions. “I think what Milei is doing is great for Argentina,” he commented, emphasizing the positive impact of free-market reforms.

However, he cautioned that such changes might come with challenges. “Changes are painful, and I hope that people have the patience to see that these adjustments can yield medium and long-term benefits,” he added.