Trade Tensions Swell Between US and EU

Dear Client: Yesterday, the Trump administration threatened the European Union with tariffs on $11 billion of EU products from motorcycles and textiles to wine and cheese, escalating trade tensions. This latest round of tariff threats is part of a 14-year long dispute between the US and EU over aircraft subsidies. We're not going to get too into the weeds, but here's the gist: The tariffs are in retaliation for EU subsidies for Airbus--the main competitor of Boeing--which the World Trade