A Republican sweep has been priced into core markets - stronger US equities, higher Treasury yields, and a more robust dollar - largely pressuring emerging market equities and currencies lower. This time, President-elect Trump is expected to hit China with a barrage of tariffs early in his administration.

Given tariff risks and trade uncertainty, emerging market equities have been sliding as&nbsp;Trump's projected protectionist trade policies, higher rates, and stronger dollar&nbsp;imply a negative macro backdrop for EM assets.&nbsp;

On Thursday, Bloomberg's&nbsp;Sebastian Boyd published a list showing Trump's tariff risks and trade uncertainty represent a negative growth hit for the rest of the world...&nbsp;

In a separate note, Goldman's&nbsp;Tadas Gedminas and&nbsp;Teresa Alves told clients last week...

Since last Tuesday, the dollar has reigned supreme, while emerging markets and global stock ex-US have slipped into negative territory.&nbsp;

EM asset&nbsp;underperformance will persist as long as the dollar remains strong.&nbsp;

"This time around our expectation is that tariffs against China could be implemented relatively early..." 
{ai:summary}<p>A Republican sweep is impacting core markets, leading to stronger US equities, higher Treasury yields, and a robust dollar, which is pressuring emerging market assets. President-elect Trump is anticipated to impose tariffs on China early in his term, raising concerns about trade uncertainty and its negative effects on global growth.</p><p>The potential for broader and steeper tariffs could lead to significant declines in emerging market stocks and currencies, with developed markets also likely to suffer. Historical data suggests that such tariffs have previously resulted in steep losses for targeted countries, particularly China, while the dollar gains strength. #economy</p>

EM Assets Hit By Negative Macro Backdrop Amid Trump's Expected Tariff Flurry Sparking Strong Dollar

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