May 28th, 2025
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Officials from the European Union are trying to stop a 50% tax on goods coming from the U.S. The U.S. President often says he is unhappy because Europe sells more goods to the U.S. than it buys, which causes a trade problem. The EU says that if digital services are included, the U.S. actually sells more, making the trade even. To help balance the trade in goods, the EU could buy more natural gas from the U.S., spend more on defense with American companies, or reduce its 10% tax on foreign cars. However, it has been hard to fix problems with European rules on food and farm products, and the sales taxes used by European governments. Experts believe that if these 50% taxes are started, the economies of the eurozone countries could get smaller by up to 1% next year, and business spending might go down by more than 6%.
May 28th, 2025
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