EMERGING MARKETS-Emerging market stocks and currencies slide as tariff deadline looms

By Lisa Pauline Mattackal

Feb 28 (Reuters) - Emerging market currencies and stocks tumbled on Friday on anxiety over a global trade war as investors looked ahead to next week's deadline for proposed U.S. tariffs on Mexico, Canada and China.

MSCI's gauge of emerging market currencies .MIEM00000CUS fell 0.3% and an index of EM stocks .MSCIEF, which dropped 2.1% to a more than three-week low, was set for its worst day since early October.

U.S. President Donald Trump reiterated that 25% duties on imports from Canada and Mexico will come into effect on March 4, denting prospects of them being delayed further.

He said goods from China would be subject to an additional 10% duty, leading Beijing to accuse the United States of exerting "tariff pressure and blackmail," and that 25% tariffs would soon be announced on imports from the European Union.

"Over time, market reaction to these tariffs are starting to look more measured ... seeing that the tariffs that Trump has proposed could be 'negotiable' in nature," analysts at Maybank said.

"However, this 'negotiable' nature of the tariffs also actually make the situation uncertain ... tariffs threats have been justified on a hodge podge of various reasons, which in turn makes it unclear what his goals are."

Emerging European currencies and stocks fell broadly against the euro EUR=, with stock indexes in the Czech Republic .PX and Poland .WIG20 down over 1% each.

"Automotive tariffs from the U.S. would be bad news for the Czech Republic and Hungary, it would add further to the problems on the supply side," said Marek Drimal, lead CEEMEA strategist at Societe Generale.

The Czech crown dropped 0.3% against the euro, despite data showing gross domestic product rose 0.7% on a quarterly basis at the end of last year, the largest expansion since the start of 2022.

Trading in EMs has been volatile this week as investors assessed a whirlwind of tariff headlines and geopolitical developments. The stocks index is set to fall 2% and the currency index was on track to drop 0.4% on a weekly basis.

EM equities have seen $5.1 billion in outflows over the past four weeks, according to data from Bank of America Global Research. EM debt, on the other hand, has seen two straight weeks of net inflows.

China's offshore yuan CNH=D3 steadied after hitting a two week low. South Africa's rand ZAR= fell 0.3%.

Focus was also on a meeting between Trump and Ukrainian President Volodymyr Zelenskiy, where they are expected to sign a critical minerals deal. Prices of Ukraine's dollar bonds broadly slipped, after a rally earlier in the week.

The rouble RUB= fell 0.4%.

Data showed Turkey's economy grew 3.0% year-on-year in the fourth quarter and 3.2% in 2024 overall, exceeding forecasts. The lira TRY=, however, dipped 0.3% and the main stock index .XU100 fell 0.3%.

U.S. personal consumption expenditures (PCE) data was also on the radar later in the day.

HIGHLIGHTS:

** Russia's seizures offer warning to Western firms hoping for Trump-inspired return

** China urged to think big, go hard on reviving battered consumption

** Trump says ongoing Gaza talks are 'pretty good'

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For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB