---
symbol: "EWY"
name: "iShares MSCI Korea ETF"
date: 2026-10-07
change_pct: -2.985861996201729
direction: "down"
event_type: "sector_sympathy"
url: "https://perplo.app/why/EWY/2026-10-07"
updated_at: 2026-10-07T11:06:40.675Z
---

# Why iShares MSCI Korea ETF (EWY) fell 2.99% on October 7, 2026

iShares MSCI Korea ETF (EWY) fell 2.99% on October 7, 2026 — Trump's 300% tariff threat hits Korea stocks.

## What happened

Trump threatened tariffs up to 300% as Korea faces pressure over US investment, triggering a 3% selloff in the MSCI Korea ETF as foreign capital rotated out of EM exposure tied to Korea's export economy.

## Why it moved

Korea's economy is deeply trade-dependent; tariff risk compresses valuations via reduced export volumes, weaker capex plans, and won weakness, all of which lower medium-term earnings for the ETF's holdings.

## Why it matters

Korea Tech had thrived on AI tailwinds and open trade; tariff threats undermine both the thematic case (memory demand) and the structural case (EM growth via exports), forcing ETF flows to reassess.

## What would break the thesis

If tariffs are delayed, narrowed, or exempt key Korean names, EWY should recover; conversely, if tariffs are imposed and sustained, Korea's growth outlook and valuations face a downward reset.

## Sources

- [Trump threatens tariffs of up to 300% as Korea faces pressure over US investment](https://www.koreaherald.com/article/10892919) — Korea Herald

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