May 28th, 2025
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Leaders in Europe are trying to stop the U.S. from putting a 50% tax on things they sell to America. The U.S. President is unhappy because Europe sells more to the U.S. than it buys. Europe says that if you include online services, the U.S. actually sells more to Europe. To balance trade, Europe could buy more gas from the U.S., spend more on American military equipment, or lower its tax on foreign cars. But, it's hard to agree on European rules for food and their sales taxes. Experts think that if the U.S. adds this new tax, Europe's economy could shrink by up to 1% next year, and companies might invest 6% less money.
May 28th, 2025
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