May 28th, 2025
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European Union officials are trying to stop the Trump administration from putting a 50% tax on imported goods. The U.S. President has clearly said he is unhappy that Europe sells more goods to the U.S. than it buys, which creates a trade deficit for the U.S. However, the EU says that if digital services are included, the U.S. actually sells more than it buys, making the trade even. To change the trade in goods, the EU could buy more liquefied natural gas from the U.S., spend more on defense with U.S. companies, or lower its 10% tax on foreign cars. But, it has been hard to solve problems about European rules on food and farm products, and the sales taxes used by European governments. Experts believe 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 spending might go down by more than 6%.
May 28th, 2025
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