<h1>Tariffs and trade negotiations shape market sentiment, linking tariff risk to inflation expectations and monetary policy outlook.</h1> China-US trade negotiations and US tariff policy drove investor sentiment, with reported concessions on rare-earth minerals supply and student admissions still awaiting executive agreement. Markets reacted with mixed equity moves and softer Treasury yields as recent inflation data suggested limited near-term tariff pass-through. Commentary connected tariff risks to inflationary pressure and to expectations for monetary policy adjustments, emphasizing continued market attention to negotiation developments and policy signals that could shift inflation expectations and asset valuations.