It is the most significant of a clutch of agreements Trump has bagged since unveiling sweeping global levies in April, though like other deals, exact details remained unclear.

Who pays for these tariffs? Most economists reckon that ordinary Americans will lose out, as prices in shops rise. Mr Trump and his coterie, by contrast, blithely insist that the rest of the world will shoulder the load by cutting their selling prices. So far, the evidence is giving the know-nothings a glimmer of hope.

President Donald Trump is set to meet with European Commission chief Ursula von der Leyen in Scotland to discuss trade. Both sides are seeking an agreement on tariff rates.

Trump believes he can deploy tariffs without tradeoffs or distortions. In reality, each new tariff move creates both.

Following the launch of President Donald Trump’s trade war, it now has an “effective” tariff of over 16%, the highest since the 1930s (see chart 1). And rates could go even higher. Mr Trump has written strongly worded letters to many of America’s biggest trading partners threatening further levies on August 1st.