The implementation of US tariffs in August marked a key development in global trade dynamics. Its outcomes were considered manageable, with most EM countries subject to tariffs in the 10–20% range. Exceptions remain however such as Brazil and India, subject to higher tariffs and creating uncertainty. On the macroeconomic front, activity indicators with both hard and soft data, have shown notable resilience. Monetary policy remained broadly accommodative throughout the month: most central banks across EM either continued their easing cycles or opted to hold rates steady amid lingering global uncertainties. Geopolitical developments offered a glimmer of hope, particularly with the high-profile meeting between Presidents Putin and Trump in Alaska but ultimately failed to deliver any substantive breakthrough. Market technicals remained supportive, with subdued supply and continued positive momentum for EM credit. Credit spread stability was supported by the resolution of key risk events and the typical seasonal lull in market activity during the summer period.