terms of trade

The Trump and his administration are withdrawing the country from its long-standing alliances, and generally remaking its relationship to the world in terms of trade and money.

"Mr Trump is concerned because the terms of trade are not really equal," explains Mr Engellau, pointing out that the EU's 10% tariffs on cars imported from the US far exceeds the 2.5% tariffs the US – currently - charges on cars imported from the EU.

"We can improve the terms of trade with the EU in a way which doesn't revisit customs unions or single markets or the arguments of Brexit, and we can do that whilst pursuing closer trade links around the world," Reynolds said.

"This is very positive in terms of trade, education, culture, tourism, all of those other links that that are really important," he added.

If severe pressure is kept in place by a hold, it generates self-reinforcing dynamics, such as rapid rises in local food prices, declines in wages and asset prices and a resulting deterioration of terms of trade.