The temporary lifting of triple-digit trade levies between China and the US while trade talks get under way removes the threat of an immediate stagflationary hit to the economy. This is very good news. It goes much further than investors thought possible—the current deal reduces the extra tariffs on China to 30%, made up of the base of 10% that will be matched by China, plus a 20% duty meant to make China do more to combat fentanyl. But an even better reason for such a big bounce is that it looks like Treasury Secretary Scott Bessent is now in control of trade policy. Put simply, the grown-ups are in the room. …Don’t get your hopes too high. Tariffs are unlikely to go back to pre-Trump levels. …Bessent is after deep reform of China’s economy. [to access the full story a WSJ subscription is required]