Oh ye of little faith – yesterday saw the biggest NASDAQ rally since 2001. Everyone can un-clutch their pearls.

Markets closed with the S&P 500 up 9.5%, the Dow up almost 8%, and the NASDAQ soaring over 12%. Why? The Art of the Deal, baby.

President Trump threw the world a curveball, announcing a 90-day pause on reciprocal tariffs—against everyone except (drumroll, please) China.

China, instead, is getting slapped with 125% tariffs in direct response to their own retaliatory measures against the U.S.

As Trump put it in a statement: “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China…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.”

Alongside the announcement, Trump revealed more than 75 countries are ready to strike a deal with the U.S.—China, notably, is not among them. So now? It’s officially everyone versus China.

Treasury Secretary Scott Bessent made it clear this was all part of the game plan.

Let’s talk history. In 1990, China was the top exporter to just 8 countries. Last year? That number ballooned to 125. And they’ve done it by relying on cheap—and unethical—labor. President Trump is done playing nice.

Before the announcement, Trump posted: “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Classic Trump—right before flipping the script on global trade.

This is why some of us said to keep the faith. The USA is already showing signs of coming out on top. China needs our markets to survive. They sell us $300 billion more in goods than we sell to them—a trade imbalance that’s about to become a critical vulnerability.

High tariffs hit them far harder than their retaliatory efforts could ever hit us. Don’t take my word for it—here’s Bessent again:

China isn’t just a trading partner—they’re our top geopolitical adversary. Everyone knows it. They’re the only country escalating this trade war, and President Xi is running out of moves. He’s boxed himself into a corner.

And he’s lashing out. China’s Foreign Ministry Spokesperson released a statement this week warning that “China will have no choice but to fight to the end.”

I think that end might be grisly—for them.

Meanwhile, buried beneath the banner headlines was a market earthquake that shouldn’t be overlooked.

The Chinese yuan has dropped to its lowest level in 17 years. It’s crashing, and Beijing is trying desperately to contain it. A lower yuan means cheaper exports, sure—but it’s a dangerous game, and they’re sweating bullets.

This spells serious trouble.

A weaker yuan makes imports more expensive—bad news for a country that relies heavily on raw materials for tech production and more. Servicing foreign debt also becomes costlier. China’s firms and local governments owe $2 trillion in dollar-denominated debt. A 10% drop in the yuan means tens of billions in extra repayment costs.

Then there’s the panic factor. Investors are spooked. The wealthy will start moving money offshore, and the broader market could lose faith in China’s economic stability. Inflation? Just icing on the bad-news cake.

In short: the pressure is on.

And business magnate Kevin O’Leary says it’s time to crank it up.

America has to be taken seriously again—and decades of weak leadership made that impossible. But Trump’s been calling this shot for years. Go back to 1995, swap “Japan” for “China,” and you’ve basically got the blueprint for today.

That was three decades ago—but Trump hasn’t changed. Now, he’s got the authority to do more than talk.

And let’s not forget steel. China’s the top exporter of it. But with these tariffs, Trump is giving American steel a real shot at becoming competitive again. That means something for the middle class. Just listen to this American steel CEO:

That’s someone who understands the stakes. Too bad D.C. doesn’t. Cue Senator Elizabeth Warren, doing what she does best:

News flash, Pocahontas: The Trump administration has racked up more private investment in 12 weeks than Biden did during his entire presidency.

The establishment media tried to gin up a panic. They practically prayed for Black Monday, hyped the midweek market dip, and danced at the idea of a Trump stumble—even if it meant economic chaos.

But they bet wrong.

Trump just pulled off the biggest power play in two decades, and China is stuck in the penalty box while the rest of the world rushes to ink zero-on-zero deals with the U.S.

Would we be here if Trump had asked “pretty please”? Of course not.

He had to break the rules of global trade—and guess what? He was right. Again.

And something tells me… it won’t be the last time.