EM Stocks Erase 2025 Gain as Tariffs Fuel Worst Day in 17 Years

Emerging-market assets slumped, erasing gains for the year as fallout from President Donald Trump’s trade policies continued to upend global markets on Monday.

MSCI’s main emerging equity index slid 7.9%, its biggest drop since the 2008 global financial crisis, as China’s retaliatory duty on US goods rippled through Asian markets. A sister gauge EM currencies fell as much as 0.6%, touching session lows after Trump threatened an additional 50% tariff on China unless the levies are withdrawn.

Read More: Trump Threatens More China Tariffs, Teases Talks With Others

“Emerging markets are still under pressure from Liberation Day tariffs, but new ...