MercadoLibre CEO says US-China business warfare is a huge alternative for Latin America

The CEO of Argentina’s MercadoLibre — regularly referred to as the Amazon of Latin America — sees giant alternative for Latin America within the U.S.-China business warfare.

“If Latin America plays its cards well, I think could benefit from this volatility,” MercadoLibre CEO and founder Marcos Galperin instructed CNBC’s Robert Frank at the sidelines of Riverwood Capital Management’s LatAm Tech Forum in Miami.

Galperin is Argentina’s richest individual with an $8.7 billion fortune by way of Forbes’ estimate.

Shares of MercadoLibre, an e-commerce and bills company, have surged by way of just about 30% this yr, whilst Amazon, dealing with large publicity to President Donald Trump’s wide-sweeping price lists, is down 15%.

Galperin instructed CNBC that Latin American companies, particularly in Mexico, stand to achieve from escalating tensions between U.S. and one if its leader business companions. He famous that many American corporations have already moved their production operations to Mexico from China and different Asian international locations.

Mexico has a unfastened business settlement with the U.S. that implies some imports from the rustic are exempt from Trump’s price lists of up to 25% on Mexican items.

The U.S. president has hit China toughest, then again, with a 145% tariff price on Chinese items.

Galperin mentioned Friday he believes there will probably be a “permanent shift” in U.S.-China business family members.

“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., and China bought T-bills and in a way financed that, I think that dynamic is kind of over,” he mentioned.

Argentina, Galperin’s house nation, has a protracted historical past of protectionist insurance policies together with top price lists. Argentine president Javier Milei, who has described Trump as an best friend, has slashed price lists and import restrictions since his inauguration in overdue 2023.

“I think what Milei is doing is great for Argentina,” Galperin mentioned of the free-market reforms.

However, he warned there will probably be rising pains.

“I hope it works,” he mentioned. “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 for everyone.”