The recent U.S. tariffs are actually increasing the burden on its own taxpayers, former U.S. Federal Reserve Chairman Alan Greenspan said at the China Wealth Forum 2018 held in Qingdao, Shandong province on Saturday.

Greenspan said via video chat that a number of senior members of the Trump administration look at the imposed tariffs as putting a block on China, but "it's not what's happening."

He said every tariff amounts to a tax, and it is American citizens who will ultimately end up paying.

He pointed out that a trade war will cause a decline in the economic activities throughout the Western world, warning the U.S. to stop before throwing itself into extraordinary difficulties.

He also said that unless the U.S. cuts back on tariffs, all the benefits brought by its previous policies including deregulation and corporate tax reduction will be wiped out.

With the theme, "Exploring New Models of Openness and Regulation", the forum provides a platform for in-depth discussions on topics ranging from globalization and the opening-up of China's financial markets to the new framework of financial regulation.

The two-day event was hosted by Qingdao municipal government and organized by Caijing Magazine and its affiliated Caijing Think Tank.