US consumers set to bear burden of Trump’s tariffs as American retailers such as Wal-Mart, Target and Best Buy weigh price hikes

American retailers are increasingly warning consumers to brace for higher prices as the United States prepares to put tariffs on nearly all goods made in China, in the latest escalation in the trade war between the world’s two largest economies.

Over the past three weeks, some of the biggest sellers of everything from apparel to electronics in the US have expressed concern over how higher duties will affect their bottom lines and said they are preparing to pass along the increased cost to their customers.

Wal-Mart, Target and the electronics retailer Best Buy are among the shopkeepers that have said they are trying to control pricing, but customers should be prepared to spend more.

The higher costs come as the retail industry has been struggling with tighter margins and business conditions that have led to the collapse of Toys ‘R’ Us, Payless ShoeSource and Charlotte Russe in the past two years.

The question for retailers is how much of a hike consumers are willing to shoulder before they close their pocketbooks.

“[Small and medium-sized businesses] tend to suffer more from tariffs and other trade barriers than large multinational firms do, with profit margins squeezed by rising costs,” S&P Global Ratings economists Beth Ann Bovino and Shaun Roache said in a research note. “To the extent that businesses can pass on these costs, consumers would see rising prices, with low-income households suffering the most.”