So far, President Trump has introduced tariffs on goods imports from the EU, Canada, Mexico and China. All of these countries have retaliated with tariffs of their own, and the EU has lodged a dispute at the World Trade Organisation regarding the tariffs on steel and aluminium. President Trump has just announced tariffs on a further $200bn of Chinese imported goods, and has rejected an offer from the EU to cut tariffs on automobile imports to zero if the U.S. does likewise. Battle is most definitely joined, and President Trump clearly thinks he will win. The U.S. trade deficit should be on its way out.