Perspectives Emerging Markets offers quarterly updates from our research team, providing in-depth analysis of economic developments, market trends, and investment opportunities in emerging economies.
Emerging Markets Q2
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At the beginning of March 2025, the US imposed trade tariffs of 25% on Mexican goods, although these were suspended shortly afterwards provided the goods concerned meet the requirements of the USMCA agreement. This suspension initially applies until 2 April 2025. It is still unclear what happens after that. However, if the tariffs are primarily used as a leverage for concessions, there are ways to prevent an escalation. The focus is on an early review of the USMCA agreement, in which Trump, with his tariff threats, could adjust various clauses to benefit the US industry.
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Emerging markets are greatly affected by tariff threats. Many of them impose higher tariffs on US goods than vice versa, and the US runs a large trade deficit with many of these countries. According to Trump, both aspects should be addressed by introducing tariffs. Alongside China and Mexico, which are already affected by tariffs, Vietnam, South Korea, Taiwan and India are among the most exposed emerging economies.
