The CEO of Mercadolibre Marcos Galperin
CNBC
The CEO of Argentina Mercadolibre – Often called the Amazon from Latin America – sees a great opportunity for Latin America in the American -Chinese trade war.
“If Latin America plays its cards well, I think that this volatility could benefit from,” said Robert Frank, CEO and founder of Mercadolibre, to Robert Frank de CNBC on the sidelines of the Latam Tech forum of Riverwood Capital Management in Miami.
Galperin is the richest person in Argentina with a fortune of $ 8.7 billion by the estimate of Forbes.
The actions of Mercadolibre, an electronic and payment company, increased by almost 30% this year, while Amazon, faced with a massive exposure to the prices of prospective of President Donald Trump, is down 15%.
Galperin told CNBC that Latin American companies, especially in Mexico, should not win tensions between us and one if its main business partners. He noted that many American companies have already moved their manufacturing operations in Mexico from China and other Asian countries.
Mexico has a free trade agreement with the United States which means that certain imports from the country are exempt from Trump prices up to 25% on Mexican goods.
The American president, however, reached China the hardest, with a 145% rate rate on Chinese products.
Galperin said on Friday that he thought there will be a “permanent change” in American-Chinese commercial relations.
“I do not know how it will end, but I think that the situation where everything was made in China and was consumed in the United States, and China bought T tickets and, in a way, funded, I think that the dynamics are sort of finished,” he said.
Argentina, the country of origin of Galperin, has a long history of protectionist policies, including high prices. Argentinian president Javier Milei, who described Trump as an ally, has reduced import rates and restrictions since his inauguration at the end of 2023.
“I think what Milei is doing is great for Argentina,” said Galperin about free market reforms.
However, he warned that there will be growing pain.
“I hope it works,” he said. “The changes are painful, and I hope people have the patience and time to give it to see that these medium and long -term changes are really creating advantages for everyone.”