How Big Economies Handle Trade Wars

Trade wars can be scary, but many big economies are ready to face them. A recent study looked at 20 big emerging markets. It checked things like debt levels and how much they rely on exports. The goal was to see how well they can handle trade problems and changing politics.

Resilience in the Face of Trade Wars

Most of these economies are in a good spot. They can handle U.S. tariffs without too much trouble. This makes people question if President Trump's trade tools are as powerful as they seem.

Key Players

• Mexico and Vietnam: Depend a lot on U.S. trade but have good economic policies and stable governments. This makes them more resilient.
• Brazil and South Africa: Making new trade friends. This could protect them in the future. Almost every big economy knows they can't rely too much on the U.S. or China. They need other markets too.

China's Strategic Moves

China is a big deal in manufacturing. It has a lot of different exports and smart people. This makes it hard for other countries to copy. China is also pushing to use its own money, the renminbi, more in trade. This helps it handle risks better.

• Brazil, Argentina, and Chile: Have deals with China. They use their own money in trade settlements. Chinese companies are also investing in mines in South America.

Economic Strength

China's exports took a hit recently. But the country is still strong. It can handle trade tensions with the U.S.