How will EM central banks respond to tariffs?

Underlying inflation problems in Central and Eastern Europe and Latin America and perennial exchange rate worries in Indonesia mean that their central banks are, if anything, likely to react hawkishly to the effects of US import tariffs. Interest rates may follow a higher path than is widely expected. But central banks in Mexico and much of Asia are likely to be more concerned about the hit to activity and more inclined to lower interest rates.