Keep in mind the following risk factor and MD&A considerations for upcoming Form 10-Q filings:

Trade Issues and Tariffs:  U.S. and Chinese officials announced in May that they had reached a temporary deal that would bring U.S. tariffs on Chinese goods to 30%, with an August deadline to reach a more permanent agreement. In late June, the U.S. and China reported reaching an understanding regarding a future trade agreement. In early July, the administration indicated that tariffs would be imposed on U.S. trading partners that have not reached a deal with the U.S. by July 9. The potential impacts of increased tariffs and trade uncertainty are discussed in our April and June Securities Law Updates.

U.S. Budget and Tax Policy: In May, the U.S. House of Representatives approved a budget and tax bill largely aligned with the goals of the Trump administration. On July 1, the Senate passed and sent back to the House a revised version of the bill. On July 3, the House approved the bill, and it was enacted on July 4 .

Foreign Currency Exchange Risk: As of June 30, the U.S. dollar index was down ~10.8% this year. In light of this significant decrease, companies should review their disclosures about foreign currency exchange risk. For example, some companies include a statement that a hypothetical 10% increase or decrease in the relative value of the U.S. dollar to other currencies would not have a material effect on their operating results. With the value of the U.S. dollar decreasing by 10%, companies should evaluate the continued accuracy of this statement.

This article is part of a Fenwick "Securities Law Update" authored by David A. Bell, Ran Ben-Tzur, Amanda Rose, and Wendy Grasso.