In escalating trade war, U.S consumers may see higher prices

The United States and China on Sunday put in place their latest tariff increases on each other's goods, potentially raising prices Americans pay for some clothes, shoes, sporting goods and other consumer items before the holiday shopping season.

President Donald Trump said US-China trade talks were still on for September.

"We'll see what happens," he told reporters as he returned to the White House from the Camp David presidential retreat.

"But we can't allow China to rip us off anymore as a country."

The 15 per cent U.S taxes apply to about USD 112 billion of Chinese imports. More than two-thirds of the consumer goods the United States imports from China now face higher taxes.

The administration had largely avoided hitting consumer items in its earlier rounds of tariff increases.

But with prices of many retail goods now likely to rise, the Trump administration's move threatens the U.S economy's main driver: consumer spending. As businesses pull back on investment spending and exports slow in the face of weak global growth, American shoppers have been a key bright spot for the economy.