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.

A trader at the New York Stock Exchange. Company profits and markets have held up despite fears over Donald Trump’s tariff regime.Credit: Bloomberg

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.

It says a lot about contemporary resilience that a downturn isn’t yet in sight. Australia, which counts China and the US as two of its top three trading partners, certainly doesn’t consider its own situation dire.

© Brisbane Times