May 28th, 2025
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Leaders in Europe are trying to stop the U.S. from adding a big tax of 50% on goods from Europe. The U.S. President is not happy because Europe sells more things to the U.S. than it buys. But the EU says that if you count online services, the U.S. actually sells more, so the trade is fair. To make the trade in goods more even, the EU could buy more natural gas from the U.S., spend more money on defense with U.S. companies, or make its 10% tax on foreign cars lower. But it is hard to fix problems with European rules for food and their sales taxes. Experts think that if these taxes are put in place, the economy of countries that use the euro could get smaller by up to 1% next year, and businesses might put 6% less money into new things.
May 28th, 2025
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