May 28th, 2025
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Officials in the European Union are trying to stop a 50% tax on imported goods that the Trump administration wants to put in place. The US President has often said he is unhappy that Europe sells more goods to the US than it buys, which causes an unfair trade situation. The EU says that if digital services are counted, the US actually sells more than it buys, making the trade fair. To make the trade in goods more balanced, the EU could buy more natural gas from the US, spend more on defense with US companies, or lower its 10% tax on foreign cars. However, problems with European rules on food and farm products, and the sales taxes used by European governments, have been hard to fix. Experts think that if these 50% taxes are put into effect, the total economy of the eurozone countries might get smaller by up to 1% next year, and businesses might invest more than 6% less.
May 28th, 2025
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