Is Donald Trump the boy who cried wolf?

The sudden reversals by President Trump on a range of issues ranging from tariffs on foreign steel to nuclear negotiations with North Korea are evidently causing investors to partly tune him out.

The stock market SPX, -2.37% DJIA, -1.92% has risen for two days in a row, for example, after the White House announced it really will enforce tariffs on billions of dollars in Chinese imports as well as foreign steel.

Read:U.S. adds 223,000 jobs in May, jobless rate slides to an 18-year low of 3.8%

What’s going on? Investors and foreign trade negotiators have apparently drawn the same conclusion: Trump’s bark is worse than his bite.

He might enforce tariffs, only to offer exemptions to certain countries. He might meet with North Korean leader Kim Jong Un in a nuclear summit. Or he might not. The administration might sanction Chinese phone-marker ZTE Corp. — or ease up on them at the behest of China’s president.

“Earlier tariff exemptions and surprising support for ZTE prompted negotiators to believe the threats were nothing more than a bargaining chip,” noted Stephen Gallagher, chief U.S. economist at Societe Generale.

Also Read: Trump-inspired talk of trade war puts sleepy trade deficit report back in crosshairs

The shifting positions of Trump has also left Wall Street unsure what to believe.

“The markets appear only marginally concerned about trade at this point, perhaps because investors are assuming that what we are seeing is the typical Trump pattern: announce something drastic, but in the end it’s not so bad,” wrote investment-research firm TS Lombard.

Even if the tariffs go into effect and foreign countries retaliate, economists say, the amount of trade involved is still very small.

Jason Pride, chief investment officer at the asset management firm Glenmede, estimates that only 4% of the $4 trillion in goods the U.S. exports and imports each year would be affected by the tariffs.

If all the tariffs were implemented, Gallagher said the effective rate of U.S. tariffs would rise to 2% from 1.5%. That would be the highest rate since 1997, he said, but still below the average rate of the late 1990s.

Gallapher continues to advise clients that he sees the U.S. eventually reworking deals with China, the European Union, and in the case of Mexico and Canada, the North American Free Trade Agreement. Yet he expects investors to face plenty of uncertain moments and he predicts that underlying trade tensions will persist.

“China has ambitions to become a leading economy with a dominant position in new technologies,” he said in a report. “The U.S., meanwhile, is defensive of its past and current position in the global economy.”