May 28th, 2025
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Officials from the European Union are working to stop a possible 50% tax on imported goods from the Trump administration. The US President has often said he is not happy that Europe sells more goods to the US than it buys, which creates a trade problem. The EU argues that if digital services are included, the US actually sells more than it buys, making the trade fair. To change the trade in goods, the EU could buy more natural gas from the US, spend more on defense with US companies, or reduce 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 difficult to solve. Experts believe that if these 50% taxes are put in place, the economy of the eurozone countries could shrink by up to 1% next year, and business investment could fall by more than 6%.
May 28th, 2025
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