U.S. President Donald Trump's tariffs on China could backfire and hurt U.S. consumers and companies instead, with over 2.5 million U.S. jobs relying on trade between the world's top two economies, the chairman of the American Chamber of Commerce in China said.
Furthermore, trade with China brought $600 billion to the U.S. in 2017 and led to $500 billion worth of investments in both economies, William Zarit, chairman for the American Chamber of Commerce in China told CNBC.
Speaking on "Squawk Box" on Thursday, Zarit said: "We have to keep in mind that these are the two largest trading countries in the world, we are very intertwined, and we rely a lot on each other for economic benefit."
"Tariffs are a blunt instrument and there will be a lot of, what we feel is, counterproductive results actually hurting U.S. consumers and U.S. companies," he added.
Beyond that, the escalating trade threats could hurt the United States' international reputation, according to Simon Baptist, global chief economist at the Economist Intelligence Unit. Chinese President Xi Jinping, meanwhile, could benefit politically from the ordeal, Baptist said.
"By responding to the U.S. and sticking within World Trade Organization parameters, [China] look good domestically, and they look good internationally. It really makes the U.S. look like the aggressor."