Initially, there was hope that Trump would avoid heavy tariffs by striking deals to moderate increases. However, by week’s end, it was clear that many countries still faced steep tariffs. US payrolls and manufacturing data showed these measures were already weighing on US economic activity. Equity prices retreated from record highs, while bond yields and the Dollar weakened after earlier gains. However, the bad news arrived only after the FOMC meeting, where confidence in the US economy led the Fed to hold rates steady. Meanwhile, the South African Reserve Bank paved the way for a repo rate cut by shifting its policy target from the midpoint to the lower 3% end of the inflation range, making further cuts more likely.