The latest round of tariffs against China may be the blow that eventually knocks down an already wobbly American economy.

President Trump’s unorthodox methods of dealing with the trade war are usually the ones making the headlines, but American lawmakers are generally split as to how the US should move forward with its eastern counterpart.

The current trade war will do little to curb China’s economic development. It masks deeper unease in the US about threats to American hegemony of an increasingly multi-polar world. Yet both countries stand to gain from continued cooperation. The escalating trade war, driven by an outdated mindset of American exceptionalism, will do more harm than good.

The recent inversion of the yield curve in the United States – with the interest rate on ten-year US government bonds currently lower than that on short-term bonds – has raised fears of a possible US recession later this year or in 2020. Yet, paradoxically, a downturn in America could help to improve bilateral economic relations with China and cool the two countries’ escalating trade dispute.

The US has labeled China a currency manipulator, and the trade war does not seem to be ending anytime soon. This may not be the beginning of a US-China currency war, but is definitely another low point in the US-China trade war.

Vice Premier Liu He responds to higher tariffs from U.S. Trump also called for U.S. companies to move out of China.

Trade talks between China and the United State have morphed beyond trade disputes, the solutions require the political will from the highest level. While working for a positive outcome, both parties should be prepared for a “no deal” scenario. The window of opportunities is closing.

Chinese foreign direct investment in the US has seen a profound decline over the past few years, but President Trump’s unorthodox methods do not account for the entirety of the issue.

With the US’s new classification of China as a “currency manipulator,” the question arises: is such a designation accurate? Could it lead to success for the Trump Administration, or will it only serve as an irritator that will open up a new fight with China?