EXCLUSIVE: These Emerging Markets Are The Calm In The Tariff Storm

As global markets spiral from fresh tariff hikes, some emerging markets defy the chaos—surviving and thriving.

In exclusive insights shared with Benzinga via email, Violeta Todorova, Senior Research Analyst at Leverage Shares, spotlighted several resilient economies she perceives as "best positioned to weather the tariff war volatility."

She says emerging markets are making the biggest impression, citing India, the UAE, parts of Latin America, and Australia.

Why India Is Insulated From Trade Disruptions

"India is seen as relatively insulated from global trade disruptions due to its strong focus on domestic consumption," Todorova said. With growth driven more by locals than exports, the market is shaping up to be a defensive powerhouse. Indian banks, in particular, shine due to "attractive valuations, room for loan growth, and lower exposure to international trade."

For U.S. investors, the iShares MSCI India ETF INDA and the WisdomTree India Earnings Fund EPI offer direct exposure.

UAE Is More Open To Trade, LatAm Offers Protection

The UAE, she added, "is becoming more open to trade and immigration," aided by policies like the golden visa. Economic optimism is fueling home buying and consumer demand – momentum captured by ETFs like the iShares MSCI UAE ETF UAE.

In Latin America, Brazil and Argentina "offer some protection from the negative impacts of global tariff hikes." U.S. investors looking for access may consider the iShares Latin America 40 ETF ILF or the iShares MSCI Brazil ETF EWZ.

Even Australia, typically overshadowed in the emerging narrative, is largely spared. "The direct impact of the new tariff regime on Australia’s economy will be small," Todorova said. Meanwhile, "Australian gold mining companies…are positioned to perform very well in 2025," with U.S.-traded names like Perseus Mining PMNXF and Evolution Mining CAHPF catching momentum.

Exposure through iShares MSCI Australia ETF EWA gives investors a backdoor into this stability play.

Expert Tips For A Global Tariff-Resistant Portfolio

Sector-wise, Todorova sees promise within borders too. Defensive players in health care, utilities, and staples "tend to be less sensitive to changes in trade policy," while services sectors – "software, cybersecurity, defense tech, and large-cap financials" – stand out for their domestic lean and AI-driven strength.

And as always, there's gold. "Gold is poised to remain a key asset in 2025," she noted, thanks to ongoing instability and demand from central banks. For U.S. investors, the SPDR Gold Shares GLD remains a cornerstone option.

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