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The new tariffs announced by Washington and Beijing this week marks a major deterioration in relations between the two countries – with one expert warning there is a "more realistic possibility of turning this trade war into a real war" if relations continue to sour. The Trump administration recently imposed a tariff start rate of 10 percent on about $200 billion worth of Chinese imports. The increase will go into effect next week but will increment by 25 percent at the begging of next year, and perhaps increase even further on an additional $267 billion worth of imports. China hit back at the United States on Tuesday, announcing it would impose tariffs on up to $60 millions worth of US goods.

Mr Trump has repeatedly criticised what he considers unfair trade practices with China – since even before he became US President. The Republican is convinced it hurts US manufacturing, and has said time and time again on the stump and on Twitter that the US must do more to tackle them. In an exclusive interview with Express.co.uk Francesco Moscone, professor of Business Economics at Brunel University London explains how the US-China relationship has turned into a trade war. Mr Moscone said: “In the last decades, the two superpower economies have relied on and exploited the globalisation for boosting their economic growth.

US-China trade war: The new tariffs announced this week marks a major detorioration

As the trade war is escalating, the future of the entire world economy is in danger given that all economises are interconnected, with a more realistic possibility of turning this trade war into a real war Francesco Moscone

“While the Chinese have been confident that the US would encouraged free trade, the Americans were hoping that the economic liberalisation in China would have led to political liberalisation as well. “Taking everyone by surprise, such expectations ended this year when Mr Trump announced in a tweet its protectionist policy and China moved towards a monocratic system, allowing Xi Jinping to govern for life.” He added: “As the trade war is escalating, the future of the entire world economy is in danger given that all economises are interconnected, with a more realistic possibility of turning this trade war into a real war. “The deterioration of the relationship between China and the US may accelerate China’s plan to conquer the South China Sea, putting an end to the American hegemony in a strategic geographical area where transits the most important maritime trade routes.”

US-China trade war: Mr Trump's decision to take on China could lead to adverse effects for consumers

More than 5,000 US goods will be affected, including meat, nuts, alcoholic drinks, chemicals, clothes, machinery, furniture and auto parts. The White House warned Monday that it would respond to any retaliation from Beijing with yet more tariffs on roughly $267 billion of Chinese exports. According to the professor, the victims of the ‘trade war’ will be consumers, who will end up paying a higher price for all the products coming from abroad. GLOBAL MARKETS FEAR SPARKED AS CHINA WARNS 'DIFFICULT TO KEEP ECONOMY STABLE

US-China trade war: More than 5,000 US goods will be affected

He said: “Americans will pay a higher price for consumer goods such as handbags, electronic products and household articles. This may cause an increase in inflation, given that American consumers will face higher prices on daily necessities, ultimately eroding their disposable income. Furthermore, China’s reaction of imposing tariffs on $60 billion of US products, witness the variety of tools that Beijing has, including devaluation of yuan and possible boycott of foreign products, to “harm” American interests in China. An example of this is American smartphones such as iPhones, which are produced in China. According to Mr Moscone, history shows there are no winners in a trade war.

In 2002, the George W. Bush Administration placed tariffs on imports of certain steel products, which led to a significant decline in the US’ gross domestic product (GDP), with around 200,000 jobs lost. Such a process is called protectionism, where restrictions are made to boost your country's industry, and shield it from foreign competition. A 2003 study by the Peterson Institute for International Economics, estimated that the tariffs may have temporarily increased steel industry employment by around 3,500 workers — but at a cost to consumers of around $400,000 per job. A protectionist policy also increases frauds as instruments to circumvent increase in tariffs, which are very difficult to spot at the expenses of the fiscal revenues such as taxes, fees, products and exploitation of the country.

Donald Trump criticised what he considers unfair trade practices with China

US-China trade war: China hit back at the United States on Tuesday