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Things You Need to Know for the Week Ahead

There’s now one less tariff to worry about. Friday night, U.S. President Donald Trump tweeted that the tariffs on Mexican imports that were set to go into effect Monday have been “indefinitely suspended.”

And in other tariff news, Monday is the deadline to file both a request to appear before the Office of the U.S. Trade Representative and a summary of the expected testimony at the public hearing on June 17. The hearing is connected with tranche 4 of the Trump administration’s plan to add a 25 percent tariff on all goods imported from China, including apparel, footwear and some textiles.

Tariffs: Trump, in a pair of tweets, said that the U.S. has “reached a signed agreement with Mexico” in which the country has “agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border.” Having the agreement in place should help the Congressional passage of the pending U.S.-Mexico-Canada Agreement.

Jobs data and economic concerns: The Labor Department’s report Friday showed that a deceleration seems to be underway. For May, the U.S. nonfarm payrolls rose by just 75,000 instead of the estimated 180,000 gain. The Labor Department also made lower revisions in the jobs count for March and April. It also said the unemployment rate has remained at 3.6 percent, representing a 50-year low.

Despite what still appears to be a tight labor market, the weak jobs report has led some to believe it provides ammunition for a Fed rate cut later this year. Federal Reserve Chairman Jerome Powell said at a conference in Chicago on Tuesday that the Fed would “act as appropriate to sustain the [economic] expansion.”

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The Conference Board earlier this year expressed concern over a possible slowdown in the U.S. economy. Its North American chief economist Gad Levanon said Friday, “Today’s [jobs] report is consistent with the growing sentiment among markets and economists that the U.S. economy is slowing down. Some of this slowdown is coming from the manufacturing sector, where employment growth has almost come to a halt.”

While Levanon said he expects the U.S. economy to continue to grow slightly above its long-term two percent trend through the end of the year, he noted that the jobs report is “another signal that the Federal Reserve will consider a rate cut later in 2019.”

Earnings: As the end of earnings season nears its close, a smaller group of companies are scheduled to report results next week: Ascena Retail Group Inc. on Monday; Chico’s FAS Inc.; on Tuesday, and Lululemon Athletica Inc., Oxford Industries Inc. and Tailored Brands Inc. on Wednesday.

Events: Trade Shows are on the agenda for next week in New York City, with the Jacob Javits Convention Center hosting the UBM shows Pre-Coterie, Moda, Fame and Accessories The Show from June 9-11. At Pier 36, also known as Basketball City, The Kingpins New York Show will be held on June 12-13. The Kingpins Transformers seminar series is on June 11 at SubCulture at 45 Bleecker Street.