At 12:01 a.m. on Wednesday, President Donald Trump’s new round of tariffs took effect, slapping imports from China with a 104% tax and escalating what is shaping up to be a global trade war with no clear off-ramp. China did not back down, instead retaliating by more than doubling its tariffs on U.S. goods from 34% to 84%.

The ripple effects were immediate: Wall Street tumbled and global markets lost trillions of dollars. JPMorgan Chase CEO Jamie Dimon is already bracing for a recession, warning that a downturn is now the likely outcome of this economic brinkmanship. The Dow Jones industrial average fell more than 2,000 points, and Treasury yields rose sharply—classic signs of investor panic.

And the tariffs are not limited to China. Trump’s so-called "Liberation Day" tariff plan now affects more than 60 countries with new import duties. He has also hinted that pharmaceuticals may be next in line for tariffs.

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