Asian delicacies stocked at Chinese grocery stores face impact from escalating trade wars
In the bustling community of Flushing, Queens, the vibrant Chang Jiang Supermarket is nestled among a row of stores, boasting aisles filled with fresh produce, traditional soy sauces, and mouth-watering seaweed snacks. This community, predominantly Asian, relies heavily on local grocers, with Chang Jiang being no exception. Chinese grocers such as this provide the coveted Lao Gan Ma chili oil and plump dried fruits, becoming an integral part of the neighborhood.
However, Chang Jiang, like other Asian American grocery stores, has found itself ensnared in President Donald Trump's trade war. Despite the administration suspending reciprocal tariffs against various countries, most imported goods still incur a 10% tariff—and, furthermore, China has been the primary target. Last month, the US raised tariffs on Chinese goods by 20%, leading to a retaliatory increase that surged levies to an astonishing 145%. With no negotiations in sight, this back-and-forth only puts community ties under greater strain, particularly for grocers like Chang Jiang.
"With the way things are now, after two months, there won't be any more inventory (from China) in the market," said Wu, the Queens supermarket manager, who spoke to CNN on the condition that his full name is not revealed.
Across the nation, customers can expect to see price increases on a diverse array of goods, including seafood, coffee, fruit, cheese, nuts, candy bars, and more. Low-income shoppers, who already spend a substantial portion of their income on groceries, will feel the impact most acutely. Moreover, those who depend on produce and other items from China will be hit even harder by the astronomical tariffs on Chinese goods.
"Companies in China still depend on us consumers. However much they increase, it all impacts us consumers," said Wu.
Dire Consequences Loom Ahead
In a phone interview with CNN, Wu discussed the struggles his suppliers currently face, with manufacturers raising prices on all items. Although they haven't increased prices for products currently in stock, new inventory could see substantial hikes of 30%, 40%, or even 50%. surprisingly, it's not the item prices that are an immediate issue, according to Wu. Some manufacturers have halted shipping goods to the US entirely due to the tariffs, leading to sales limits and potential shortages.
"The price hasn't increased a great deal (for what suppliers currently have on hand)," he explained, "but instead of selling me the 50 or 100 items I need, they'll only give me five or ten items."
While Chang Jiang hasn't raised prices for its customers yet, the supermarket could be forced to seek alternative suppliers after depleting its inventory from China in two months. This could mean turning to suppliers in Taiwan or Southeast Asia to make up for the shortage.
"We hope that (the trade war between the US and China) is resolved as soon as possible," said Wu. "If it keeps being delayed for two months, the consequences will be unimaginable."
The pain is similarly felt across the coast at Wing Hop Fung in Arcadia, California. The family-owned business specializes in teas, Chinese herbs, and other Asian products in this predominantly Asian community near Los Angeles. The managers expressed concerns about how the business would absorb the increased costs due to the doubling of tariffs.
The demand for specialty and ethnic grocery ingredients has risen over the last decade as American tastes broaden to include Asian, Hispanic, and Middle Eastern dishes. The market for these niche items is projected to reach $153.2 billion globally in 2032, up from a $81.6 billion market in 2023, according to estimates from Fortune Business Insights. This growing passion for international flavors has led to a revolution in the supermarket industry in the US, with stores like H Mart and Patel Bros expanding rapidly across the nation.
While large chains have the resources to shore up their supply chains, small, family-owned stores face limited options. In some parts of the country, like Honolulu's Chinatown, the uncertainty of Trump's tariffs has triggered concerns.Local business owners fear that the trade war will cause setbacks, so they're hesitant to stock up on inventory until they can accurately predict the future cost of goods and prices.
So, customers, Wu warns, should stock up on their favorite items while quantities and prices remain stable, for better days when prices will inevitably skyrocket.
- Despite President Donald Trump's suspension of reciprocal tariffs, imported goods in Chang Jiang Supermarket, like other Asian American grocery stores, still incur a 10% tariff, with China being the primary target.
- The supermarket manager, Wu, stated that some manufacturers have halted shipping goods to the US entirely due to the tariffs, leading to sales limits and potential shortages, especially for items like herbs, which are commonly sourced from China.
- As the trade war between the US and China continues, Wu expresses hope for a swift resolution, as the consequences, such as increased prices and potential inventory shortages, could be unimaginable for small, family-owned stores like Chang Jiang Supermarket.
