Raising tariffs on all Chinese goods that enter American borders will likely hurt U.S. economic growth, which has already shown signs of slowing in recent months, according to Japanese financial firm Nomura. President Donald Trump has claimed on several occasions that the U.S. has collected billions of dollars in tariffs paid by the Chinese, which partly contributed to the strong American economy. Economics experts say that's not, in fact, how tariffs work, and Nomura's chief U.S. economist, Lewis Alexander, said Tuesday the net impact of the trade fight is likely negative for America.

Fed to stay on hold

Still, the potential hits to the U.S. economy don't justify a rate cut by the Fed, according to Alexander. He explained that if the U.S. moves ahead to impose 25% tariffs on all Chinese goods, core inflation in America could tick up by 0.5 percentage point over the next 12 months. Central banks globally typically cut interest rates to stimulate economic activity and stoke inflation. Lowering rates while inflation is inching up puts an economy at risk of overheating, which is often a precursor to a painful downturn.

Alexander is not the only one expecting the Fed to keep interest rates steady. Carmen Reinhart, a professor at the Harvard Kennedy School, also said the U.S. central bank is right to stay patient in making any interest rate movements. "We cannot lose sight that the U.S. unemployment rate is the lowest since the 60s, the economy — by any metric — is still operating close to full employment," Reinhart told CNBC on Tuesday at the Nomura forum. "The Fed's wait-and-see attitude is really on the mark," she added.

Watch: How do tariffs work?