President Donald Trump made the surprise decision on Wednesday to pause his newly instituted tariff regime and focus his energy on China. According to his statement, a 90-day pause will be instituted while various agreements are hammered out. 

The exception? China is now set to receive a 125 percent tariff in response to the retaliatory tariffs it placed on American goods.

Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off…

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 9, 2025

Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!

That news sent stocks soaring, with the three major markets all up over five percent as of this writing. While there's still a ways to go to make up the losses of the last week, that's certainly a welcome start for everyone invested, including all the Americans who rely on the stock market to build their retirements. 

Where does this go from here? It seems like Treasury Secretary Scott Bessent has firmly taken control of the ship. He is now advertising that countries that do not retaliate will be "rewarded" as deals are struck. Ninety days should offer a long enough period to get most of this done with our allies and favored partners. 

What does this mean for those who wanted to use tariffs to remake the economy? I'm not sure. There's still a lot to be decided here, but for now, a more pro-growth strategy seems to have been adopted, and that's a good thing for all Americans (and Republicans politically). It also gives the United States the leverage it needs to take on China without ancillary factors getting in the way. If Trump can get deals with nations like Japan, Vietnam, and South Korea relatively quickly, then the CCP will be isolated in a way it hasn't been in a long time.