Trade headlines will be front and center this week, as investors keep an eye on developments involving the U.S. and several of its key trading partners, including China and Canada.
The Trump administration is set to slap a 25 percent tariff on $34 billion worth of Chinese products, from more than 800 product categories, on July 6. A second set of Chinese goods valued at some $16 billion that will be subject to proposed tariffs is undergoing review.
In response, China announced that it would impose duties of its own on a similar value of U.S. products. An initial list of $34 billion in U.S. goods, including soybeans and electric vehicles, will be subject to a 25 percent tariff on July 6, with additional duties on $16 billion more in U.S. goods in the works.
Beyond the world's second-largest economy, the U.S. is also engaged in NAFTA renegotiations with Canada and Mexico. Canadian tariffs on around $12.5 billion of a range U.S. products, including staples like chocolate, beef and maple syrup, took effect on Sunday. Mexico, meanwhile, is set to raise tariffs on pork.
Those moves come after the Trump administration imposed steel and aluminum tariffs on U.S. allies, also including the European Union, earlier this year.
Although the initial tariffs are expect to only have a small impact at a macro level, especially in China's case, investors are concerned over an escalation in retaliatory action having a broader negative impact on global growth.