The world has already undergone two rounds of tariff increases in the United States and Chinese repayment. But the rates for this weekend, along with another round that is delayed until December 15, are different from those that came before, according to Aditya Bhave, a global economist at Bank of America Merrill Lynch.
"For previous tariff rounds, obviously there was an attempt to stay away from consumer goods," Bhav told me. "Now they are running out of consumer goods."
JPMorgan Chase predicts that US tariffs imposed on China already cost the average US household $ 600 a year, Bank and will increase to $ 1
The December tranche is particularly risky, Bhave points out, because unlike previous rounds, there are few alternative countries from which US companies can
What it means: Businesses will not be able to protect their customers by switching suppliers. Instead, they will probably have to bear the extra cost.
Beware: These tariffs will also affect China, Bhav argues. "They have a pretty high capacity to tolerate pain, but that doesn't mean they don't hurt," he said. Keep an eye on the manufacturing sector, private investment and consumer confidence – as well as any announcements for new public spending.
Brexit is about to get even softer
UK lawmakers are back from their summer vacation, which means the fight for Brexit is about to become one stage. Watch out for more instability of the pound ahead.
Prime Minister Boris Johnson last week made a shock he asked the queen to end parliament in about five weeks – the longest suspension of decades – just as the October 31 Brexit deadline expired.
Legislators now have only a few days before the suspension to introduce legislation that would prevent the indiscriminate exit from the European Union without a trade defense deal. They will try to do this this week.
The legal challenge against Johnson's maneuver will also continue forward this week in Scotland.
Meanwhile, Brexit negotiators continue discussions with their European counterparts.
Remember: Riotous Brexit has major risks for the UK economy and its trading partners. Germany, which is on the verge of recession, is closely watching developments.
The US economy gets a third-quarter reality check
Now sending a big week of US economic indicators from CNN colleague Annex Tape in New York:
"Worries about the future of the US economy they emerged in August as the inversion of the Treasury's yield curve triggered a recession warning.
Next week's economic data should give us a better idea of where we are in the third quarter. The ISM T production index for August is coming on Tuesday. But the biggest item on the calendar is Friday's job report.
Monday: Chinese PMI Caixin Manufacturing PMI
Tuesday: US ISM Manufacturing Index; UK003 returns [19659 Wednesday: US trade balance; Australia's GDP Q2; decision on interest rates in Canada; gains on the American eagle and the weak
Thursday: US ISM Non-industrial Index; CrowulStrike Income;
Friday: August Report on US Jobs