Glass Half-Full Economy Has Rarely Looked So Good

Seldom has the middling been the cause of so much relief. Six months after the White House unveiled steep tariffs, the global economy has held up well — mainly by outperforming some doleful projections. There's been no recession. Forecasts have even been revised up a touch.

Just imagine how things could be humming along without some self-inflicted wounds by the two countries that matter the most. After a few months of positive noises from America and China, relations again soured after Beijing clamped down on exports of rare-earths elements that are vital to manufacturing everything from cars to fighter jets. In return, President Donald Trump threatened even more tariffs on Beijing. There's still hope that commercial ties will avoid a more dangerous breakdown. Treasury Secretary Scott Bessent hinted at a long cooling-off period.