Tariffs Impact on Small Businesses
Yesterdays tariff updates threaten to devastate the supply chains that our (and most) small businesses rely on. And it’s not just the obvious imports – it affects materials and goods (even ones made in the US).
Small businesses that already operate on small margins are being forced to do more with even less, and make difficult decisions – what to cut, what to raise, how to survive. And #Chinatown small business are once again bracing for another wave of uncertainty amidst slow recovery from past crises.
Beyond small businesses, the residents of a socioeconomically diverse neighborhood like Chinatown will feel the consumer burden hard – especially our seniors and low-income families, many of whom are already on the margins.
Navigating the chaotic and confusing economic ecosystem is top of mind as we build out our small business support for this year – with a focus on resiliency and contingency planning. And we’re listening closely to voices of those impacted the hardest – the quotes above are gathered from interviews with business owners across the community. They are a preview of what likely lies ahead.
In the immediate:
1. WANT TO HELP? Interested in volunteering your expertise to small business owners through workshops and 1:1 services? Reach out to jackie@welcometochinatown.com
2. NEED IMMEDIATE SUPPORT? Email chinatown@welcometochinatown.com to set up time to speak about your concerns and how we can provide resources asap
3. AND IN GENERAL: If you have the means, shop local, tip well, and support the businesses that support our neighborhoods.
Hear from Business Owners
Mei lum - Wing on Wo & co
Tariffs could deal a blow to Chinatowns that have no choice but to import cultural goods, locals say
By Kimmy Yam, NBC News
“’And a lot of them have told me that their solution to mitigating these circumstances has been to eat those costs and only raise those prices by a smidgen, just to make sure they’re affordable for the people that frequent their establishments.
… How long can they sustain that?’”
Lisa Cheng Smith - Yun Hai Shop
Grocery Shoppers Will Feel the Tariffs First in the Produce Aisle
By Kim Severson, New York Times
“’We’re on the front line because we’re the importer,’ said the company’s chief executive, Lisa Cheng Smith, whose most recent shipment of goods came in on Tuesday, just a day before the tariffs were announced. She plans to examine creative ways to reduce other costs by 32 percent without losing her business.’We’re not going to panic and just raise our prices right away,’ she said.”
Helen Nguyen - Saigon Social
East Village Vietnamese restaurant stockpiling ingredients in wake of Trump's tariff announcement
By Cefaan Kim, ABC7
“Chef Nguyen is stockpiling about a month's worth of ingredients. About 90% of the restaurant's spices are sourced from Vietnam.
Chef Nguyen is now rethinking the menu, and some suppliers are telling her in a few weeks they may stop sending some ingredients altogether. She is bracing. She just doesn't know yet exactly what she is bracing for.”
Hei Chan - New Kam Man
Trump's tariffs and rising costs threaten Chinatown's economy, cultural heritage
By Kristen Saloomey, Al Jazeera
“ ‘The items we sell are highly specialized they’re named brands from Hong Kong that many grew up with and want. We can only get them by importing.’
Chans say he will have no choice but to raise them. In the meantime, businesses like Chans have been stockpiling goods to try to delay the impacts of tariffs on goods.”
