October 7

10/7 - Following a 10-year fight, the World Trade Organization finally sided with the U.S. in a case involving subsidies the European Union gives to Airbus (the top Boeing competitor). As a result, the U.S. Trade Representative (on Oct 2) announced a plan to impose retaliatory tariffs on European products. The tariffs will go into effect on Oct 18. Airplanes (Airbus) and airplane parts imported into the U.S. will be subject to a 10% tariff. Additionally, the U.S. will impose 25% tariffs on another $7.5B in European goods that include Irish and Scotch Whiskies, wine, olives & olive oil, cheese, yogurt, butter and pork. Seventy percent of the olive oil consumed in the U.S. comes from Europe. With a major trade war now on two fronts, and U.S. businesses and consumers picking up the tab, the EU tariffs will help heighten the odds for a recession in 2020 or 2021.