Week Ahead: Tariffs Test Sentiment

• Over the weekend, President Trump confirmed tariffs of 35% on Canada (excluding energy and USMCA-compliant goods), and 30% on Europe and Mexico (excluding USMCA-compliant goods), effective August 1.
• These levels are higher than anticipated and are likely to weigh on sentiment this week, though a window for negotiations remains open.
• In Australia, the focus this week is Thursday’s labour force data, where unemployment is expected to remain steady at 4.1%.
• In the US, inflation is in focus. CPI (Tuesday), PPI (Wednesday), and Import Prices (Thursday) will offer a clearer picture of whether earlier tariffs are feeding through to domestic prices.