New York Small Businesses Feel The Heat From U.S. Tariffs

Despite bouts of fickle weather outside, the aisles remain busy in Asian grocery stores in Flushing, the fourth-largest central business district in New York City and home to a fast-growing Asian population.

Inside Chang Jiang Supermarket, an Asian grocery store, shopping carts laden with various goods inch forward as they queue for checkout.

"Look at this checkout line. It's much longer than usual," Wu Jianxi, the manager, told Xinhua.

Amid the Trump administration's erratic tariffs, particularly the ridiculously high ones on Chinese imports, several business owners voiced growing concern: once their current inventory runs out, rising import costs may force them to raise prices, potentially driving customers away.

"We haven't raised prices yet. We're trying to stock up as much as we can. ... I contact suppliers every day to get inventory. But the amount allocated to each supermarket is also limited. After two months, the warehouse will be emptied," said Wu.

Prices have not gone up yet. But customers are stocking up as well, he said. "My personal suggestion is to buy long-lasting dry goods or oils that can be stored longer."

As 60 percent of Chang Jiang's goods are imported from China, price increases are likely in the future, said Wu.

In downtown Flushing, four major Asian supermarkets anchor the main intersection, serving as essential stops for locals shopping for everyday goods. These supermarkets draw steady foot traffic with their distinctive products and competitive pricing, making them cornerstones of the community's daily life.

"Trump might have his reason to have goods produced in the U.S. But for now, domestic production can't meet the demand," said a manager of U.S. 1 Supermarket, surnamed Zhang.

If tariffs between China and the United States remain in place, it could lead to constrained supply capacity in the United States and limit product availability, he said.

"When products must be sourced locally, inventory is limited and consumer choice narrows," Zhang said. "Eventually, the pressure trickles down to both businesses and shoppers -- in the form of higher prices."

Manhattan's Chinatown is also home to a large Chinese community that relies on local grocery stores for daily essentials and imported goods from China, such as soy sauce and other key cooking ingredients that evoke a "taste of home" for the older generation, as well as snacks popular among children.

Jennie Li, the owner of Red Apple Gift Shop, which sells traditional Chinese items like small Buddha statues and dragon figurines, said the most immediate impact of the tariffs has been a rise in shipping costs, which have increased by six U.S. dollars per pound.

"Things sold in Chinatown are already quite cheap, with slim profit margins," she said. "Prices for everyday items at supermarkets are going up."

"I didn't expect the tariffs to hit so quickly, and with the added warehouse costs, our expenses have only risen," she said. "We will face higher costs, so we're considering extending the shop's hours."

Jasmine Baker, a 20-year-old Brooklyn resident, expressed concern that high tariffs may even knock the small stores out of business.

"I like the affordable prices and unique products here that aren't available in traditional U.S. supermarkets," she told Xinhua while shopping at a Chinese supermarket in Manhattan's Chinatown. "It makes me scared, not just for me but for other communities, for people who are reliant on the prices. It makes me concerned about the success of these businesses and whether they are gonna be able to survive."
-XINHUA