US President Donald Trump’s tariffs on Chinese imports are biting into the income of some American retail-focused companies, with at least two already in bankruptcy court and others forecasting significant losses.

Exporters were shouldering a relatively small share of duties on goods sent from China to the US, leaving American firms to absorb the remaining costs orpass them on to consumers, according to minutes from the Federal Open Market Committee’s meeting on July 29-30, citing the views of its participants.

Economists warned this would translate into higher prices if the tariffs remained in place.

Most imports from China currently facea 55 per cent tariff, including increases under both Trump’s presidential terms. The US president has said the duties would help balance trade and stimulate industry at home.

“The tariffs are across-the-board, so most US companies that import goods from China are seeing costs rise,” said Christopher Beddor, deputy China research director with Gavekal Dragonomics in Hong Kong.

He warned that lay-offs were imminent, adding that firms would “in turn pass some of the increase on to customers”.