The recent meeting between President Trump and President Xi represents a step in the right direction, as it provided a temporary respite in the US-China trade dispute. The immediate outcomes—such as the reduction of US tariffs on Chinese imports by 10%, the delay of new export controls, and China’s commitment to resuming purchases of US soybeans—are welcome, but the market reaction was muted. Much of the optimism had already been priced in, and it is unlikely that the agreement will significantly change the short-term outlook for global trade or economic growth. The temporary truce also means that uncertainty will ... (full story)