San Francisco: Businesses in Chinatown face soaring costs and supply challenges due to a 145% tariff on Chinese imports amid the ongoing trade war. Owners report rising prices, delayed shipments, and stockpiling as the community braces for continued economic uncertainty under President Trump’s administration.
Many businesses in San Francisco’s Chinatown are struggling to cope with the effects of the ongoing trade war as President Donald Trump’s administration reaches 100 days in office. The trade tensions have caused significant uncertainty and increased costs for local business owners, with tariffs on goods from China posing particular challenges.
Despite a temporary pause on reciprocal tariffs against various countries until early July, the Trump administration continues to enforce a 145% tariff on most goods imported from China. This high tariff rate is directly impacting the cost and availability of supplies for businesses in Chinatown, forcing many into survival mode.
Nancy Yu, owner of four stores in Chinatown including Asiastar Fantasy, recently returned from a trip to China where she discussed these issues with her suppliers and shipping partners. “We had really good talks with all my suppliers and my shipper, and we all think we should hold my shipment a little bit,” Yu told ABC7 San Francisco. Due to the soaring costs, Yu has opted to delay new shipments for the next few months. Since the trade war began, she reports that shipping costs for some products have doubled or even tripled.
The trade war is not only affecting businesses but also residents within the community. Many stores report customers stockpiling supplies like soy sauce, rice, and snacks to hedge against anticipated price increases. Mill Lei, owner of Jumbo Trading Company, shared with ABC7 that the cost of imported food has increased so rapidly that price labels need updating every few days. To manage these uncertainties, Lei has been importing large quantities of staple goods to avoid higher prices later. “I think it’s 400 bags. Yeah, the small bags 400 bags and the big bags 200 bags,” she said.
Yu has taken multiple steps to safeguard her business but remains cautious about the coming months. “Hopefully by July, there’s some good news going on so I don’t have to make hard decisions over what to get and what not to get, and have to think very carefully,” she said.
President Trump has indicated that trade negotiations with China and other countries are ongoing, suggesting potential changes could arise in the near future. The Chinatown community continues to navigate the economic pressures brought on by the trade war, with many hoping that forthcoming diplomatic efforts will ease the financial strain.
The ABC7 San Francisco is reporting on this evolving story that highlights the tangible effects of international trade policies on local businesses and communities.
Source: Noah Wire Services
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