WASHINGTON, April 27 -- The escalating US-China trade war, driven by President Donald Trump's tariff increases, is beginning to affect American consumers and businesses more directly.

Since the tariffs on Chinese goods were raised to 145 per cent in early April, cargo shipments have sharply declined, with one estimate suggesting a 60 per cent drop, Bloomberg reported today.

Though the impact has not been widespread yet, it is expected to hit home soon, particularly for companies that depend on imported goods.

Retail giants like Walmart and Target have warned of potential product shortages and rising prices if the situation does not improve.

Torsten Slok, chief economist at Apollo Management, has predicted shortages and layoffs, affect...