The US-China Trade War Heats Up: Rice Prices in New York's Chinatown Soar 40% in a Week, Businesses Worry About Losing Customers
The US-China trade war is escalating, with the US imposing tariffs of up to 145% on Chinese imports, impacting the economy of Chinatowns across the US. In New York's Chinatown, the price of a bag of rice crackers at "New Wing Food Grocery Company" increased from $4.99 to $6.99 within a week, a 40% rise. Businesses are facing the economic pressure of soaring procurement costs and losing customers, threatening the cultural and economic lifeline of the community. San Francisco's Chinatown is also affected, with businesses feeling anxious about the future as supply chain disruptions worsen the situation.
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04/19 11:06
The US-China Trade War Heats Up: Rice Prices in New York's Chinatown Soar 40% in a Week, Businesses Worry About Losing Customers
The US-China trade war is escalating, with the US imposing tariffs of up to 145% on Chinese imports, impacting the economy of Chinatowns across the US. In New York's Chinatown, the price of a bag of rice crackers at "New Wing Food Grocery Company" increased from $4.99 to $6.99 within a week, a 40% rise. Businesses are facing the economic pressure of soaring procurement costs and losing customers, threatening the cultural and economic lifeline of the community. San Francisco's Chinatown is also affected, with businesses feeling anxious about the future as supply chain disruptions worsen the situation.
Tariff Impact Directly Hits Everyday Product Prices
Sun Vin Grocery, which has been operating on Mulberry Street in New York City's Chinatown for over ten years, has recently become a microcosm of the tariff war. A package of rice crackers imported from China has seen its price surge from $4.99 last week to $6.99 this week, a $2 increase, equivalent to about 40%. This is not an isolated case; other products like Chinese medicine, noodles, and jade jewelry have experienced similar price hikes.
The store manager, Mr. Bai, candidly admitted, "This will have a significant impact. In the future, we may have fewer customers, and they will buy less food." He pointed out that many customers are low-income immigrant families who are extremely sensitive to price changes, and this wave of price increases may force them to reduce consumption or shop in other areas.
Traditional Goods Hard to Replace, Supply Chain Limited
Chinatown businesses have long relied on imported goods from China, especially culturally important products like Chinese herbs, jade jewelry, and specific foods, which are almost impossible to source locally in the U.S. or from other countries. The owner of the well-known New York City jewelry store "Popular Jewelry" stated that the ever-changing tariff policies make it difficult for businesses to stabilize pricing, "It's nearly impossible for us to keep prices stable or offer consistent quotes to customers."
This uncertainty is also reflected in supply chain management. The nonprofit organization "Welcome to Chinatown" pointed out that most local businesses have inventory that can only last one to two months. Once the current stock is depleted, businesses will have to restock at higher costs, further driving up retail prices.
Medicine and Daily Necessities Also Affected
It's not just food and jewelry; medicine prices are also facing upward pressure. Daniel Dellaratta, a pharmacist who has worked in New York's Chinatown for 30 years, said, "We estimate that within the next 90 days, most generic drugs will see significant price increases." Many of these drugs' raw materials come from China, and higher tariffs directly affect import costs.
Additionally, some businesses report that even non-China-sourced products are affected. For example, panic buying by consumers has led to shortages of basic necessities like salt, showing that the ripple effect on the supply chain has extended beyond U.S.-China bilateral trade.
San Francisco's Chinatown Faces Similar Challenges
On the West Coast, the situation in San Francisco's Chinatown is just as grim. Edward Siu, president of the local Chinatown Merchants Association, noted that businesses are facing high uncertainty, with many owners feeling anxious and frustrated about the future. He said, "Many people are unsure about what will happen next. They are very worried and frustrated right now."
Some business owners, like Selena Lee of "Linda Boutique," stated that although her jade materials come from Myanmar, the processing and manufacturing are completed in China, causing overall procurement costs to triple due to tariffs. She emphasized, "This is not just about profit; it's about cultural continuity."
Dual Pressure on Community Culture and Economic Lifeline
Chinatown businesses are not just part of the economic system; they also carry the community's culture. Many immigrant families rely on these stores to purchase familiar ingredients and supplies, maintaining a connection to their homeland. Now, under the dual pressure of high tariffs and supply chain disruptions, these businesses are facing a survival crisis.
"These stores are not just shops; they are the lifeline of our community," Edward Siu described the role of Chinatown businesses. As prices rise and customer bases dwindle simultaneously, the operational space for these small family businesses is significantly compressed, further diminishing Chinatown's economic vitality and cultural diversity.
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