As part of a new agreement between the US and UK, the US agreed to reduce import taxes on a set number of British cars and allow some steel and aluminium into the country tariff-free.
But it will leave a 10% duty in place on most goods from the UK.
Pushed on what impact a closer relationship between the UK and the EU would have on the economy and inflation, Mr Bailey said: “It would be beneficial. Having a more open economy to trade with the European Union. Because there has been a fall-off in goods trade with the EU over recent years.”
He added that it’s important because the EU is the UK’s largest trading partner.
“It is important we do everything we can to ensure that whatever decisions are taken on the Brexit front do not damage the long-term trade position. So I hope that we can use this to start to rebuild that relationship,” Mr Bailey said.
The Governor also said that the UK’s dealmaking across the world was setting an important example to other countries.
“It demonstrates that trade deals are important. Trade deals can be done, and the trade is important…honestly, it seems an unpromising landscape at times. But I hope that we can use these deals to rebuild the world trading system,” he said.
