Despite Trump’s ‘Deals,’ the Trade War Is Still On

President Donald Trump got some good news this week related to his trade war with the world. First, he secured a 90-day tariff truce with China – breathing room to negotiate further. Then, newly released inflation figures suggested his import duties have not really raised prices for American consumers – yet.

That’s on top of last week’s news that the U.S. and United Kingdom had agreed to a framework – not a deal, but a deal to try to make a deal – to resolve their trade differences.

The White House has portrayed the China announcement and the U.K. development as trade agreements, but they aren’t. (The joint statement describing the latter explicitly says “the United States and the United Kingdom recognize that this document does not constitute a legally binding agreement.”)

That doesn’t mean they aren’t good news for consumers and investors around the globe, many of whom worry Trump’s actions may plunge the U.S. economy into recession. And, indeed, markets responded to each development with a happy dance.