Marcos Galperin sees permanent shift in U.S.-China trade relations

Argentina is witnessing notable shifts in economic dynamics due to the ongoing trade tensions between the United States and China. Marcos Galperin, CEO of MercadoLibre, highlighted potential benefits for Latin America during his interview with CNBC on April 25, 2025. Galperin posits that there will be a lasting alteration in trade relations between the U.S. and China, indicating a decline in the traditional economic dependence where U.S. consumed Chinese goods and financed them via Treasury bills. Since the Trump administration initiated reciprocal tariffs in April 2025, the focus has shifted to not only tariffs but also on addressing non-tariff barriers (NTBs). These NTBs present significant challenges to U.S. exports, complicating the landscape for trade, especially with critical partners like the EU and China. Many American firms have started relocating their manufacturing bases to Mexico, taking advantage of its free trade agreement with the U.S., which provides benefits not applicable to imports from China. The Argentine government, led by President Javier Milei, has also taken significant strides towards reforming trade policies by reducing tariffs and import restrictions since his inauguration in late 2023. While praising Milei's free-market reforms, Galperin cautioned about the potential challenges that come with such rapid changes, emphasizing the need for patience and time to establish the long-term benefits of these transformations. Overall, the shifting landscape of U.S.-China trade poses both challenges and opportunities for Latin American countries, with Mexico positioned to benefit from this volatility, according to Galperin. If managed correctly, these developments might provide Latin American firms a chance to capitalize on increased cooperation with the U.S. as firms seek alternative manufacturing bases in the wake of rising tensions with China.