• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Are China tariff risks priced in emerging markets?

by January 18, 2025
written by January 18, 2025

Investing.com — Escalating U.S.-China tensions could trigger new tariffs, with EMs potentially bearing the brunt rather than China itself, according to UBS.

Chinese export prices have fallen 18% from their post-pandemic peak, while global export prices declined by only 5%. This significant disinflationary effect has bolstered China’s export competitiveness, with Chinese export volumes rising 38% over the past five years compared to a mere 3% globally.

UBS analysts suggest that new tariffs on China could deepen the export-driven pressure on other emerging economies rather than China itself.

The market hasn’t fully priced in the risks, UBS notes, emphasizing that EM equity valuations remain 30% higher than during previous U.S.-China trade disputes despite weak returns on equity.

The research also points to vulnerabilities in tariff-sensitive industries like steel, autos, and transport infrastructure, which form a larger share of EM equity indices compared to developed markets. Furthermore, a shift in U.S. trade deficits away from China toward countries like Mexico, Vietnam, and Taiwan could make EM equities even more exposed to protectionist policies.

While some investors believe these risks are already reflected in EM asset prices, UBS counters that optimism in earnings growth projections and compressed credit spreads suggest otherwise.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Why you should avoid Ericsson stock in 2025, Bernstein
next post
Here’s why JPMorgan says investors should stay underweight emerging market stocks

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Factbox-Who are bankrupt Northvolt’s creditors?
    • China’s Xpeng says no impact from US curbs on its Turing AI chip output

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy