EM earnings brace for tariff wrath

Hard pressed

- Harsha Jethmalani

U.S. President Donald Trump's decision to levy reciprocal tariffs on trading partners has opened a can of worms for emerging market (EM) equities. A 10% baseline tariff is levied on all countries effective 5 April, while countries with whom the U.S. has large trade deficits are subject to higher reciprocal tariff rates effective 9 April. With that, EM economies are now exposed to external risks such as subdued export demand and currency volatility weighing on their economic growth prospects.