The current trade tensions between China and the United States are less likely to lead to a trade war, according to Citibank.

Jamie Wu, head of the investment strategy and communication department at Citibank China's wealth management unit, said during a news conference on Tuesday that the US tariff plan on Chinese imports mainly targets industries closely related to the Made in China 2025 strategy.

It may have some negative impact on the economies of both countries in the long run, but there haven't been signs of this for the time being. Only market confidence has been slightly affected shortly after the tariff plan was announced.

On March 22, US President Donald Trump signed a memorandum which could impose tariffs on imports from China worth up to $60 billion.

As Citibank estimated, China's GDP growth might be slowed by 0.23 percentage points once the tariffs are imposed. As China has various trade partners worldwide, coupled with the Belt and Road Initiative, the impact will be quite limited, said Wu.

Wu suggested investors look at companies, both in the US and China, which focus on the domestic market. Insurance, banking and retail are less likely to be affected by the possible tariff plan.