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President Trump's decisions on the US-China trade war reflect a method to the madness, his supporters insist. To everyone else, it just appears to be madness. Regardless, Trump's abrupt announcement on Tuesday that new tariffs on Chinese goods would be delayed inadvertently provided some clarity on the US economy.
Soon after the news was released, US stocks surged. The implication: a fair amount of the recent weakness in US economic growth is bound up with the US-China trade war. Absent this self-inflicted policy, output would be stronger and recession fears would fade.