Escalating trade tensions between the US and China spell a “huge opportunity” for Latin America, says Marcos Galperin, the chief executive of MercadoLibre Inc (NASDAQ: MELI).
Galperin is currently the richest person in Argentina with a fortune of about $8.7 billion.
Speaking with CNBC today, the billionaire said, “If Latin America plays its cards well, I believe it could benefit from this volatility.”
Note that the US-listed shares of MercadoLibre Inc have rallied more than 20% in recent weeks.
US-China trade tensions are helping MercadoLibre stock already
US stocks have recovered as much as 10% since April 8th on the back of the White House agreeing to a 90-day pause on almost all of its tariffs.
However, the Trump administration continues to slap higher duties on Chinese goods, citing retaliation against its new trade policies.
Beijing has raised tariffs on American goods to 125% this month in a show of utter defiance against Trump’s tariffs.
President Xi has pledged to fight to the very end against these US tariffs.
Amidst all of this turmoil, Argentina’s richest man sees a huge opportunity for Latin America.
Galperin’s firm, MercadoLibre, which is often touted as the Amazon of Latin America, has significantly outperformed AMZN since the start of 2025.
Manufacturing is increasingly coming to Latin America
According to Marcos Galperin, the shift in the US-China trade relations could lead to a “permanent change” in global trade dynamics.
US companies are already moving their manufacturing operations from China to Latin American countries like Mexico, which benefits from a free trade agreement with the United States.
This shift could position Latin America as a more attractive region for trade and investment, the CEO of MercadoLibre added in his interview with CNBC.
What’s also worth mentioning is that there have been discussions and interest from Argentina’s leadership, particularly under President Javier Milei, to pursue closer trade ties with the US.
Are MELI shares worth owning in 2025?
Argentine president Javier Milei has called the Republican leader, Donald Trump, an “ally” on numerous occasions.
Upon his inauguration in 2025, he even lowered tariffs on US goods and minimise import restrictions as part of his broader commitment to pursue closer trade ties with the United States.
“I think what Milei is doing is great for Argentina,” according to Marcos Galperin, the chief executive of MercadoLibre Inc.
The narrative is not really lost on Wall Street analysts either, given that the investment firms currently have a consensus “buy” rating on shares of the e-commerce and payments company based out of Montevideo, Uruguay.
Experts currently see upside in MercadoLibre stock to $2,549 on average, which indicates potential for a more than 10% upside from current levels.
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