VWO - DAILY CHART
The emerging markets today can face an increase of and perhaps pessimism as Trump's stated that will reinstate Steel and Aluminum tariffs for Brazil and Argentina since, in his perspective, both countries are devaluating their currencies to be "unfairly" competitive in the sale of agricultural goods, which is negative for U.S farmers. We must remember that since the beginning of the Trade War, China has stepped into the gas pedal in buying Brazilian agricultural goods, and the Brazilian currency has reached new record lows against the U.S dollar, which theoretically bases Trump's argument. This could be bad news for the market if imply a new Trade War front against these Latam countries, that doesn't have China firepower to sustain a tariff battle against the U.S.
Trump's movement could be clearly interpreted as an endeavor to take these competitors of the road, to try to suffocate China's lifeline of agricultural goods, and maybe force them to become more friendly with the idea of expanding their spending on U.S agricultural goods.
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