Gary Shapiro, the CEO of Consumer Technology Association, has stated that the US Economy is likely to fall into a “Tramp recession” should Washington continue with its threat of imposing new trade tariffs on billions of dollars of Chinese products.

Tariffs could hurt the economy

Shapiro spoke to CNBC during the CES Asia technology conference held in Shanghai, and he called tariffs an economic fence that is not an excellent strategy to help the US resolve the ongoing trade tensions with China. He added that tariffs are taxes that will hurt consumers as well as most American companies. He noted that a positive assessment of the hard-line stand on tariffs approach held by President Trump is not held by economists outside the White House.

With the US and China deadlocked in the protracted trade dispute a number of economists have warned that the tariffs President Trump is imposing on Chinese goods may not benefit the US and will ultimately backfire and send the economy into recession.

However, despite rising concerns and unconvincing jobs data for May Steven Mnuchin, the Treasury Secretary told CNBC that the economy of the US remains to be a “bright spot of the world” and there is no possibility of an economic downturn.

Tramp threatens Beijing with more tariffs

On Monday the president renewed his tariff threats on Beijing after international affairs head as the US chamber of commerce Myron Brilliant indicated that weaponization of tariffs was hurting the economy and it is creating uncertainty. Tramp has also asserted that if the Chinese president doesn’t turn up at the G-20 meeting to be held in Japan, he will add more levies to Beijing.

The trade dispute between Washington and Beijing escalated in May after the US placed Huawei on the entity list restricting its ability to purchase technology from American companies. Although the Commerce Department has granted the company reprieve, China has begun developing its semiconductor industry, and this might hurt the profits for US firms.

Shapiro further indicated that restrictive actions in the tech industry are likely to get out of control, which will ultimately crush US chip companies and consumers.