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 often said he is unhappy that Europe sells more goods to the U.S. than it buys, which causes a trade imbalance. The EU believes 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 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 hard to fix. Experts think that if these taxes are put in place, the economy of the eurozone countries could shrink by up to 1% next year, and business spending would drop by more than 6%.
May 28th, 2025
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