Trump fees "confusing" threaten the gains of emerging markets reached during his reign

Donald Trump’s second term achieved big profits for the shares of emerging markets, as was the case in the first term, but it is in the face of the setback, as commercial and financial policies weaken the profits of companies. The MSCI Emerging Market won every month from January to August this year, the first year in Trump’s second state. This result has only been achieved twice in 37 years since investors’ detection of the category of emerging market assets: the first in 2017 is also the year of Trump’s inauguration, and the second in 1993 during the Bill Clinton period. But the profits achieved by the markets are hiding a disturbing fact for investors whose wealth has increased by 4.3 billion dollars so far this year: Companies in developing countries are under pressure. It could not meet the profits of 2025 profits, and the average results came without estimates for the thirteenth quarter in a row. Expectations have also begun to decline, indicating the exacerbation of the crisis. See also: Emerging markets are sighing of relief after postponing Trump’s customs duties. Customs duties and financial expansion have reduced the attraction of the dollar as a safe haven, which investors have asked to look for alternatives. At the same time, technological restrictions and commercial barriers have eradicated revenue and profit growth in developing countries from South Korea to Brazil. “We adhere to the shares of emerging markets in the global context, as the risks associated with customs duties still put the morale under pressure. Stock profit for 2025 to a falling path after the fees have been stopped for 90 days, reflecting the fear of the esalation of the customs print in the second half of the year.” This year, most of the startups of the emerging market funds are expected to have the dollar power; They saw that Trump’s customs duties would delay US monetary facilitation and cause more demand for the US currency. This is reflected in poor expectations for the shares of developing countries that usually fall with the strength of the dollar. But these assumptions collapsed when Trump’s policy urged global investors to diversify their investments, causing flow from the United States that weakened the dollar. Emerging markets were the largest beneficiaries as it attracted investments supported by sectors such as Asian AI, mining companies in Africa and the stories of recovery in the border markets. Hassanein Malik, a strategy in ’tiller’ in Dubai, said: ‘The biggest positive impact on the emerging markets of the Trump administration was through the weakness of the US dollar. It is irony that has driven the concerns about the erosion of controls and balances in the United States towards the emerging markets, which are associated in specific assets. Also read: The International Financial Institute: Trump’s economic policy is a two -sided currency for emerging markets, the basics of companies in emerging markets, but although the upcoming emerging rise gives the impression that emerging markets are resistant to commercial unrest, the basic companies reveal the contrary. About half of the businesses listed in the MScI index for emerging markets were unable to reach the expectations of the analysts this year, and the average difference was about 8% less compared to estimates. Export -based sectors, such as basic commodities and industries, are most affected. Signals are also increasing for Trump’s profit reports as reasons for poor performance. The Samsung Electronics Electronic Unit was shocked by investors by registering quarterly operating profit of 85% of estimates, and the main reason was the high cost of inventory for artificial intelligence chips due to US restrictions. Indian stocks have become the biggest negative bet on investors after Trump imposed customs duties by 50% on the country’s exports, according to “Nomura Holdings”. A survey of Bank of America has shown that the fifth largest economy in the world of the first Asian option for fund managers has shifted to the least preference in just three months. Earlier in August, the company “Tata Motors” in Mumbai owns “Jaguar Land Rover” announced a 63% decline in net income. The company attributes this drop to the US fees, which is estimated to cost an extra $ 341 million. This situation asked analysts to reduce their expectations for profits within the next 12 months. MSCIS has dropped 1% over the past eight weeks. However, profits must have a leap of 11.4% during the next year to achieve current expectations. Trump’s customs duties are not the only threat to corporate profits. A fierce price war that harms Chinese consumer companies and low oil prices in the Middle East. Nevertheless, investors may not have seen all the effects of Trump’s customs duties, as companies have accelerated their exports to the United States after the final dates of the fees, according to Julius Bayer. He said: “These surpluses due to acceleration will fade in the coming months.” He added: “As far as the earnings of emerging markets are concerned, it means that the risk is prone to negative as the end of the year approaches.”