Is a trade war merely the continuation of US policy by other means?

US trade policy and the current administration’s rejection of multilateralism are getting more and more concerning. Despite the appreciation of the US dollar, “the US economy is doing great” (dixit Fed Chair Powell) and the Federal Reserve’s confidence is rising. European economic momentum has clearly disappointed so far this year. Growth, as evidenced by business surveys is, however, not falling off a cliff, while a rise in inflation and hence the monetary normalisation are confirmed. Japan’s core inflation is going down again, fuelling the Bank of Japan’s cautiousness.