May 28th, 2025
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European Union officials are trying to stop the Trump administration from putting a 50% tax on goods brought into the US. President Trump has often said he is unhappy that Europe sells more goods to the US than it buys, which causes a trade difference. The EU says that if digital services are counted, the US actually sells more, making the trade fair. To balance the trade in goods, the EU could buy more natural gas from the US, spend more on defense with US companies, or lower its 10% tax on foreign cars. However, issues with European rules on food and farm products, and the sales taxes used by European governments, have been difficult to fix. Experts think that if these 50% taxes are put in place, the total economy of the eurozone countries might get smaller by up to 1% next year, and business spending could go down by more than 6%.
May 28th, 2025
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