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The Week Ahead: Tariffs are Front and Center

One tweet here, another tweet there. What will next week, or even this weekend, bring?

Tariffs: Might President Trump have a last minute change of heart? U.S. businesses that say they don’t have enough time to prepare for the new increases certainly hope so. And separately, more than 200 American footwear companies have banded together imploring Trump to cancel the tariffs altogether. Tariff changes have been disclosed on Twitter, and companies will be closely monitoring for a Trump tweet that they hope indicates a delay in the start of the next round.

Currently, new tariffs are set to take effect on Sunday for Chinese imports of apparel and footwear, but instead of at a 10 percent rate, they will see a 15 percent tax. The balance of list 4 goods will be taxed starting Dec. 15. President Trump also raised the tax on $250 billion worth of Chinese imports that had been taxed at 25 percent. They will now be taxed at 30 percent, effective Oct. 1.

Brexit: Newly elected British Prime Minister Boris Johnson received approval from Queen Elizabeth II to suspend Parliament for a month, starting the second week in September and running through Oct. 14. The suspension means lawmakers will have limited ability to stop a no-deal Brexit outcome. The U.K. is slated to leave the European Union trading bloc on Oct. 31, with or without a deal. Now the question is: will the opposition be able to forestall the suspension?

Earnings:  American Eagle Outfitters Inc., G-III Apparel Group Ltd., and Lululemon Athletica Inc. are scheduled to report earnings next week.

Events: New York Fashion Week starts Sept. 6 and runs through Sept. 14.