A trade war would be bad, but Trump does have a point

China has been flouting intellectual property rules and it has more to lose

Here come the trade wars - possibly. The Trump administration's imposition of tariffs on $60bn (42.5bn) of imports from China could be a huge moment for the global economy. Past presidents toyed with the idea of branding China a "currency manipulator" but have always stepped away from action. Trump hasn't gone down that route, with its ill-defined policy implications, but has instead gone for the jugular. China is deemed guilty of "economic aggression" by pinching US intellectual property and must pay a price.

The consequences of that declaration depend on two things. First, will the size of the tariffs match Trump's rhetoric about China engaging in abuse over decades? It is possible measures will be watered down if financial markets throw a wobbly, but Trump had advertised his intentions since taking office and you will struggle to find a chief executive of a large multinational that does not think China plays fast and loose. Chinese abuse of intellectual property rules is not a secret.