The Trade War’s Ripple Effect on Businesses in Chinatown
As the first 100 days of Donald Trump’s presidency come to a close, businesses in San Francisco’s Chinatown are grappling with the ramifications of ongoing trade tensions, particularly the high tariffs imposed on goods from China. This situation has pushed many local entrepreneurs into a survival mindset, navigating through uncertainty and escalating costs.
Uncertainty Leads to Caution in the Market
Despite a temporary pause on reciprocal tariffs on various countries set until early July, the 145% tariffs on many Chinese imports remain enforced. This scenario has created an unsettling environment for business owners.
Nancy Yu, owner of four stores in Chinatown, including Asiastar Fantasy, recently returned from a trip to China. She highlighted that the trade war’s impact is palpable, not only for her but also for her suppliers. “We had really good talks with all my suppliers and my shipper, and we all think we should hold my shipment a little bit,” she stated.
Delays in Supply Shipments
In light of these developments, Yu has decided to postpone incoming shipments for the next couple of months. She reported that shipping costs for some of her usual supplies have skyrocketed, often doubling or even tripling since the initiation of the trade conflict. This price escalation has forced local residents to stock up on essentials in anticipation of further increases.
Local Shopping Trends Shift
Mill Lei, owner of Jumbo Trading Company, also noted significant shifts in consumer behavior. She observed a surge in bulk purchases of imported goods as residents prepare for potential price hikes. “Everybody comes to buy the soy sauce, come to buy the rice… come to buy the snacks,” Lei explained, reflecting on the increased demand for staple items.
Frequent Price Adjustments
Lei shared that the rapid increase in costs has necessitated frequent adjustments to her pricing stickers—sometimes occurring every few days. With tariffs weighing heavily on their operations, local businesses are acting proactively by importing large quantities of supplies before prices escalate further.
Looking Ahead
At Asiastar Fantasy, Yu is doing everything she can to mitigate risks for her business. Her hope lies in new trade agreements that could alleviate the current pressures and bring prices down. “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,” she said.
President Trump has indicated that trade negotiations with China and other nations are still ongoing. The outcomes of these discussions will be critical in determining the future landscape for businesses in Chinatown and beyond.
