If you live here in New Jersey — whether you’re a small business owner, a retiree watching your 401(k), or just trying to keep your weekly grocery bill under control — you’ve probably been watching the recent headlines on tariffs with a mix of confusion and concern. I get it. The last couple of weeks have been a whirlwind.
But this week brought a surprising pivot: President Trump hit the brakes on his sweeping reciprocal tariff plan, pausing it for 90 days. That news sparked a massive market rally, with the S&P 500 surging over 7% — the kind of jump we haven’t seen in quite some time.
So let’s break it down: What happened, what’s still in motion, and what does it mean for you here in the Garden State?
A 90-Day Timeout (With a Twist)
In a social media post that caught both Wall Street and global leaders off guard, President Trump announced a 90-day pause on the broader reciprocal tariffs — those aimed at dozens of countries including key U.S. allies.
At the same time, he kept the new 10% duties that just went into effect last weekend in place. And when it comes to China? He’s turning the pressure up to 125%, citing a lack of “respect” from the world’s second-largest economy.
So we’re not out of the woods just yet — especially when it comes to China — but for the rest of the world, we now have a temporary reprieve.
What This Means for New Jersey
Let’s bring it closer to home.
Market relief = portfolio rebound
For retirees, 401(k) holders, and anyone with a diversified portfolio — this pause was welcome news. The markets loved the clarity, even if temporary. We saw a rally of over 7% in the S&P 500 and over 6% in the Dow. That’s real movement for anyone checking their accounts in Roseland, Cherry Hill, or Hoboken.
Tariff pause = inflation pause (maybe)
Earlier this week, Yale released a study showing these tariffs could increase household costs by an average of $3,800 per year. That’s groceries, car parts, electronics, and more — all costing more than they did six months ago. A 90-day pause offers hope that talks will cool down those inflationary pressures, at least in the short term.
Still rough waters for small businesses
New Jersey businesses that rely on imported goods or global supply chains are still dealing with uncertainty. If you run a manufacturing shop in Middlesex or a logistics firm in Newark, the 10% duties that already went into effect still apply — and we’re not totally sure what comes next once this pause expires in July.
What’s the Strategy Here?
According to Treasury Secretary Scott Bessent, this wasn’t a reaction to market volatility — this was the plan all along. By announcing a pause, the administration is buying time for one-on-one negotiations with over 75 countries. Think of it like this: Instead of applying the same policy to everyone, they’re now looking to tailor agreements — country by country.
It’s a massive undertaking, and one that could drag on past the 90-day window. Early talks are starting with Japan, South Korea, and Vietnam — but others could take weeks or even months.
What’s Next?
We’re still facing a lot of “known unknowns.” Will this pause lead to permanent deals? Will tariffs ramp back up in July? And how will China respond to the intensified pressure?
For now, though, there’s some breathing room. Markets have calmed. Wall Street is cautiously optimistic. And American consumers — including folks right here in New Jersey — might be spared from a full-scale price spike, at least for the next three months.