May 28th, 2025
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Officials in the European Union are working to stop the Trump administration from putting a 50% tax on imported goods. 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 imbalance. However, the EU believes that if digital services are included, the US actually sells more than it buys, making the trade equal. To change this, 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. But, problems 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 could shrink by up to 1% next year, and business investment could drop by more than 6%.
May 28th, 2025
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