New Delhi, April 6 -- China "played it wrong", according to US President Donald Trump, referring to Beijing's retaliatory 34% tariff on American imports in response to his extra levy of that rate as a "reciprocal" barrier to Chinese goods.

This marks a flare-up in economic warfare between the world's top power and its chief challenger. It also makes many economists wonder if China's response was knee-jerk.

Its reply to earlier tariff hikes was nuanced; it seemed aimed at reducing Chinese demand for stuff coming from US 'red states'. This time too, it could've finessed its hit-back to pack a punch at US producers with minimal recoil impact on its own economy.

Does China plan to substitute all its US imports? Maybe it expects to defend i...