Washington/Shanghai | The United States and China will return to the negotiating table over the weekend for last-ditch talks aimed at heading off a crippling trade war after Donald Trump followed through on his threat to impose tariffs on $US200 billion ($285 billion) of Chinese imports.

China vowed to retaliate against the tariff hikes, which bring Australia's two biggest trading partners to the brink of an economic rupture that has spooked sharemarkets and played into Labor and the Coalition's election  messaging about the need for economic stability.

Reuters