Chinatown Businesses Prepare for Trade War Impact
In San Francisco’s Chinatown, local businesses are taking proactive measures as the US-China trade war escalates significantly. With China recently increasing retaliatory tariffs on American imports to 125%, and the US responding with duties as high as 145%, the repercussions are being felt across the community.
Stockpiling Supplies Amid Uncertainty
Business owners are bracing for the impact by stockpiling essential supplies. Abby Huang, owner of the House of Dim Sum, shared how her restaurant has filled every available space with supplies, particularly those sourced from China. “We began ordering extra supplies when the talk of tariffs started. Our to-go food containers, which we rely on heavily, are all imported from China,” Huang explained.
The restaurant’s operations depend on these supplies, and Huang has noticed that even her suppliers are running low on inventory. Some recent orders were only partially fulfilled due to depleted stock, prompting her to secure extra storage space for her business.
Adapting to Supply Chain Challenges
Nearby, Kevin Chan, the owner of the Golden Gate Fortune Cookie Factory, has shifted to ordering brown paper bags in bulk as a substitute for their usual Chinese imports. This is just one of many adaptations that local businesses are making.
Chan, whose factory has operated since 1962, commented on potential future shortages: “Even if the trade war ends, the effects will linger due to the lengthy shipping times between the US and China.” He also expressed concern over escalating prices for sesame seeds, a critical ingredient for their cookies. “When prices go up, everyone gets scared, and they just jack up the price,” he stated.
Impact of Rising Costs
The current trade policies are adding further burdens on small businesses still recovering from the pandemic. Chan highlighted the ongoing challenge posed by high egg prices—a key ingredient for their fortune cookies—indicating he now pays twice as much for a case than he did previously. “This is one of the things that I am concerned about a lot,” he remarked, emphasizing the ripple effects of the tariffs on his operations.
Local shops are also warning customers about expected price increases on sauces and other food products imported from China. “The cost of food is going up, up, up,” Huang pointed out, stressing that while they can’t keep raising prices indefinitely without risking losing customers, the situation is becoming increasingly unmanageable.
Community Sentiment
As the uncertainty continues, many in Chinatown are growing weary. Huang expressed her concern that this turbulent business environment might become the new normal, making it challenging for businesses to maintain stability. She concluded, “This has been tiring; we need a clear path ahead.”
Chan added a hopeful message printed in one of his fortune cookies: “Both countries should work together and build a better world,” reflecting a desire for cooperation in midst of adversity.
