In addition to economic impact, Posen said the United States, by imposing tariffs, has sent a "disruptive" message to China and other countries, which could "divide the world" on important issues.

The group of experts, who visited China earlier this month, are also concerned about increased frictions on the investment and high tech fronts.

"The broader tech conflict is much more harmful on the engine of the U.S. economy," Posen said, noting that the U.S. administration's "broad export control regime" would likely impede cross border technology flows.

Such frictions may also make it harder for the United States and China to close a deal, as the depth of mistrust is growing, said Jeffrey Schott, a senior fellow at the PIIE.

"Clearly we are much further away from a deal than we were at the end of April," he said, yet adding that he does not think "the door is shut."

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