By Bill Witherell, Ph.D.
Just days after US President Trump announced a ceasefire and resumption of trade negotiations with China, the US Trade Representative proposed new tariffs on 89 European Union ((EU)) goods worth $4 billion. These levies are in response to concerns about aircraft subsidies, and would be added to the $21 billion list of potential tariffs the US threatened in April. Rising trade tensions with the US add to already substantial headwinds to Europe's economic growth, which include sluggish export growth, flagging business confidence regarding the US-China trade dispute, and the increasing threat