As the world's two largest economies face off over trade deficits and threaten tariffs, there's a worry that millions of American jobs could be impacted. Toby Muse reports.

Stock markets are diving on fears of a potential trade war that may be brewing between the world's two largest economies, China and the U.S. Beyond the markets, real jobs could be at stake in this conflict.

In the U.S., think-tank group, the Brookings Institute has estimated that nearly two million American jobs could be affected by China's trade tariffs. In particular, they highlight plastic product manufacturing, aircraft manufacturing and pharmaceutical preparation manufacturing.

U.S. President Donald Trump suggested last week that the conflict with China could sting the U.S. economy.

VOICE OF US PRESIDENT DONALD TRUMP 77 WABC RADIO BERNIE & SID IN THE MORNING "I'm not saying there won't be a little pain. But we'll have a much stronger country when we're finished."

Interestingly - and likely not by coincidence - a slight majority of the jobs impacted are those in counties that voted for President Donald Trump in the 2016 election, including states like Iowa and Ohio. This is important because congressional elections in November could boost Trump's political opponents.

Any major change to the economy can produce unintended consequences. When President Trump announced proposed tariffs on steel and aluminium imports in March, economists worried that it could save jobs in those sectors - but harm others.

EDWARD ALDEN SENIOR FELLOW, COUNCIL ON FOREIGN RELATIONS "For the American economy. I think there will be winners and losers. I think the steel and aluminium producing industries will win, they'll be able to produce more steel and aluminium, they will probably hire some workers back. And I think the losers will be all of the manufacturing industries that rely on steel and aluminum, particularly the auto industry but also construction equipment; constructions buildings rely on steel, oil pipelines."

U.S. based- consulting group, Trade Partnership Worldwide released a study saying that for every one job created in steel and aluminium industries, five more jobs could be lost as the price of products goes up. The threat to jobs in the U.S. economy comes on a weak jobs report for March, following strong job reports for February and January.

The White House insists that President Trump's realignment of trade with China will boost the U.S. economy.

LARRY KUDLOW US CHIEF ECONOMIC ADVISOR "I think this will grow the U.S. economy, grow the Chinese economy and grow the world economy."

President Trump also softened his tone on social media over the weekend, and tweeted: President Xi and I will always be friends, no matter what happens with our dispute on trade.

The question is will both sides take a step back before the jobs are lost in the U.S. and China if and when tariffs are implemented. Toby Muse, CGTN, Washington.