China awoke in shock on Thursday, April 3, upon finding images of the US president standing at his podium in the Rose Garden of the White House, holding a large chart of his new tariffs. On the first line was the additional 34% tax affecting China. "They charge us, we charge them less. How can anybody be upset?" Donald Trump asserted. The US administration immediately clarified to CNBC that these new tariffs are in addition to the 20% already imposed in two rounds in February and March on Chinese products entering the US. At that time, the escalation had seemed altogether measured and manageable.

Things are very different this time. The threat of a 60% tax on Chinese products floated during the US presidential campaign had been taken with the detachment befitting the Republican's sometimes extravagant promises. On Thursday, the reality came very close to that rate. "The scope and level of the tax increases exceed expectations," noted China's most respected and independent economic media outlet, Caixin, speculating that this will "reshape the American and global economies, push inflation and drag down economic growth."

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