Trump hopes to “correct” a “large and unsustainable” trade deficit caused by “many years” of the EU imposing tariffs on the US.

The EU will suspend retaliatory tariffs on U.S. goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month.

“The higher that tariffs end up being, the more stagflationary it will be,” said Eric Winograd, an economist at the investment firm AllianceBernstein.