May 28th, 2025
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Officials from the European Union are working to stop the Trump administration from putting a 50% tax on goods brought into the country. President Trump has often said he is unhappy that Europe sells more goods to the U.S. than it buys, which causes a trade difference. The EU says that if you include digital services, the U.S. 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 U.S., spend more on defense with U.S. companies, or lower 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 fix. Experts believe that if these 50% taxes are started, the total economy of the eurozone countries could become up to 1% smaller next year, and money invested by businesses might go down by more than 6%.
May 28th, 2025
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