America could narrow its merchandise trade deficit with EU countries by imposing tariffs on them, but at a cost of higher inflation and lower GDP than otherwise for the US and nearly all the other EU economies. The measures, however, would have little impact on the global US trade deficit, according to our new analysis. President Donald Trump has announced, postponed, and threatened a dizzying variety of trade protection policies since taking office in January. These include, for example, slapping 25 percent tariffs on imported steel, aluminum, and downstream products. The EU has said it will retaliate by imposing ... (full story)