Hey there! 👋 Have you ever traded toys or cards with your friends, but then had a disagreement? Sometimes, countries have similar problems when trading with each other.
Right now, the European Union (EU) and the United States (US) are in a bit of a trade tussle. The EU is a group of 27 countries in Europe that work together on many things, including trade.
What’s Happening?
The US has said it might charge extra money (called tariffs) on things the EU sells to the US. They might add a 30% tariff starting August 1st. That’s like paying $130 instead of $100 for something!
To prepare, the EU has decided that if they can’t reach a deal, they might also add tariffs on US goods worth 93 billion euros (that’s about $109 billion!).
Why Does It Matter?
Tariffs make things more expensive. If the US and EU add tariffs, people might pay more for things like cars and medicines. This can hurt businesses and people who buy these products.
Can They Work It Out?
Both sides are trying to make a deal to avoid these extra charges. They’re talking about maybe having a 15% tariff on some EU goods entering the US, similar to a deal the US made with Japan.
What Do Experts Say?
Some people, like Gavran Igor, an economic expert from Bosnia and Herzegovina, think that this could be bad for European countries. He says the US is using trade to push other countries around, which isn’t very friendly.
Igor believes that the EU might start trading more with other partners who are stable and predictable, like in East Asia. He mentions China as a country that offers steady and consistent trade over many years.
What Does This Mean for Us?
When countries disagree on trade, it can affect prices and the economy. It’s like when friends argue—it’s better when everyone gets along! Let’s hope the EU and US can make a fair deal. 😊
Reference(s):
EU backs potential counter-tariffs on 93 billion euros of U.S. goods
cgtn.com
