The overarching theme of April was higher US tariffs announcement on Liberation Day, leading to a sharp repricing across all asset classes in the following days, then a subsided volatility by the end of the month. Inflation dynamics remained generally positive with central banks maintaining accommodative policies to support growth. India slightly cut rates to further stimulate economic activity, while Mexico and Indonesia kept inflation within target ranges. Only Brazil opted for a rate increase during the month. Despite the new challenges, the growth outlook for EM remains positive with resilient economies, facing only a lower tariff of 10%, primarily in the Middle East and Latin America. The indirect effects through global factors are the main transmission channel in our view. Heightened macroeconomic uncertainty led to a steep sell-off in EM sovereign and corporate credit spreads widened by 19bps and 33bps, respectively. This reflects broader market volatility, particularly within the higher-yielding segment.