May 28th, 2025
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Officials from the European Union are trying to stop the Trump administration from putting a 50% tax on goods brought in from other countries. The U.S. President has often said he is unhappy that Europe sells more goods to the U.S. than it buys, which creates a trade deficit for the U.S. The EU argues that if digital services are included, the U.S. actually sells more than it buys, making the trade even. To fix the trade difference in goods, the EU could buy more natural gas from the U.S., spend more on defense with U.S. companies, or lower its 10% tax on foreign cars. However, it has been hard to solve problems about European rules for food and farm products, and the sales taxes used by European governments. Experts predict that if these 50% taxes are put in place, the total economy of countries using the euro would shrink by up to 1% next year, and business spending would go down by more than 6%.
May 28th, 2025
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