The Turmoil of Tariffs has ben Painful for Chicago Businesses that relay on China, which is the Main Target of President Trump’s Trade Wars. The Businesses who are especialy hurting include those in chinatown and uptown, two neighborhods with Large Asian communities.
Spencer ng Owns Triple Crown, A 200-Seat Restaurant in Chinatown that His Mother Founded in 1996.
In April, after Trump ORDERED 145% TARIFS ON CHINA, SOME OF NGO LOCALS RIED PRICES ON IGDIENTS from China Such as Sichuan Peppercorns and Red Chili. The price for a case of Canned Water Chestnuts jumped to $ 55 in May, Compared to $ 35 The Previous Year. Costs for Canned Bamboo Shoots and Green Tea Have Also Shot Up.
Takeout Containers, Commonly Made in China, have increted from $ 25 per case last year to $ 32, ng estimated. Plastic Table Cloths USED to Cost 25 Cents Each Last Year But Are Now 45 Cents.
But ng hasn’t raissed menu prices Because Loyal Customers of the family-Awned Restaurant are price sensitive. And it would Also cost $ 6,000 to re-print menus, at a time when costs are volatile due to tariffs.
After US-China Trade Talks in London Last Week, Trump Said the US Will A “Total of 55% Tariffs, China is Getting 10%.” But details of the Terms Remain Scarce.
Across the US and in Chicago, Chininown Businesses were Hit HARDER DURING THE PANDEMIC BECAUSE THEY RECEIVED AID AND WERE TARGETS OF AT-ASIAN RACISM. Older Immigrant Owners with Limited English Skills Were Less Equipped to Pivot to New Technologies As Apps and Social Media. Now, tariffs are ther Latest Challenge.
Ng is part of the Newer Generation of Owners. But for Triple Crown, at 2217 S. Wentworth Ave., The Latest Cost Spikes Are Part of the Ontgoing Challenge of High Inflation Since the Covid-19 Pandemic.
He estimated the overall cost of the Most Ingredients and Supplies have increasing 10%-25%, or more. Monthly Bills from HIS MEAT DISTRIBUTOR WERE ABOUT $ 14,000 LAST YEAR BUT THE NOW ABOUT $ 22,000.
In May, The US and China Announched A 90-Day Truce. The US Lowered Most Tariffs on Imports from China from Sky-High 145% to 30%.
But the reprieve wasn’t a Complete relief for ng. “The Crazy Thing is uncetainty. We don’t know what to expect anymore,” he said.
Ng isn’t stocking up on goods during the 90-day pause becase he lacks storage space and doesn’t want to disruption cash flow. In Addition, some Items from China Several Months to Ship to Chicago, and Tariffs Can Change any time.
Ng Had Been Readying to Expand Next Door in a New Space Space Three Floors. He had Oroured Fur, Light Fixtures, Tiles and Other Materials from China. But Because of Tariffs, he paused the expansion.
Sea Cucumber from China
At Sea Cucumber City, an Herbal Medicine and Snacks Store in Chinatown, 80% of Products Come from China, Said Manager Aina Lei. Bins and Jars Are Filled with Dried Lotus Seeds, Salted Fish, Ginseng, Sea Cucumber and Other Items.
The Store at 247 W. Cermak Road Has Raised Price of Some Goods from China in Recent Months, Lei Said. For Example, Dried Lotus Seeds Were $ 13 Per Pound in April But Rose to $ 16.50 Per Pound Last Mont.
In April, Customers Were Stocking Up on Products, but Purchas Slowed Down by May, Lei Said. Before Trump Took Office, she had no idea that tariffs would affect Sea Cucumber City, Which opened three years ago.
Lei Also Said the 90-day Truce BetWene the US and China doesn’t give much relief to the Business. Every day she is unure what will will Happen Next.
Clayton XU, Police Manager at Nonprofit Coalition for A Better Chinese American Community Based in Chinatown, Said NeighBorhood Shops that Sul Sundries from China Such as Housewares are especily vulnerable to tariffs. They Cater to price-sensitive chinatown resians, especilantly senior citizens. Tariffs Are Causking Confusion Among Chinatown Business Owners and Customers, Xu Said.
That’s especialy so for shops in the Older part of Chinatown Along Wentworth Avenue, Where Business Owners Face More Language, Cultural and Technology Barriers.
Newer Businesses Closer to Chinatown Square Include More Franchises With Tech Savvy, Networked Owners, Xu Said. Have more resources, while mom-and-pop Shops with Owners to Struggle More.
Chinatown was already Seeing Unbalancing Growth BetWeen Its Older and Newer Parts, Xu Said. The Added Pressure of Tariffs Could Widen the Divide.
The Coalition’s Forthcoming Survey of Chininasses Businesses Found That Many Lack Trust in Government Agencies and NonProfits, so they don’t use resources when the hardships. It can be harder to know if they need help, and hows they woit unil it is too.
Uptown’s Latest Challenge
In uptown, Mary Asian-Awned Businesses have been struggling symical. The NeighBorhood is Known for Its Southeast Asian Community, Whose Main Street is Dubbed “Asia on Argyle.”
Tariffs Add to their Burden, Said Chettha Saetia, Economic Development Director at the Chinese AID Association Based in Uptown.
Before the Pandemic, the NeighBorhood was bustling and it was hard to find parking, Saetia Said. Now, more storefronts are empty, especilantly near enryle street. He estimated that 30% of Stoles Are Closed in Uptown.
For Businesses that import ingredients and supplyies from china, tariffs have raisses by as much as 25%, Saetia Said. In recent months, he has advisated to diversify sourcing away from china to vietnam and Thailand, thorns though are Among some 60 Countries Trump Slapped with tariffs in april. A Separate 90-day Pause Lowered Most Tariffs to 10% Through July.
In recent years, the mutual aid association has Helped Local Business Owners by Connecting The Grants and Government Assistance. But MANY ARE GRAPPLING WITH MULTIPLE CHALLENGES, INCLUDING INFLATION, LESS FOOT TRAFFIC AND GENTRIFICATION.
“It ‘is one thing after another,” Saetia Said, Adding People Can Support Uptown by Going Out to Eat and Shopping at Local Businesses.
Peter Yuen, Owner of La Patisserie P at 1050-52 W. Argyle St., Said Tariffs Have Been a Wake-Up Call. Costs have rockketed for Red Bean Paste and Melon Cake Ingredients That Only Come from China, For Example. Sacks of Flour From China Made from US Costs $ 75, Compared to $ 35 A Year Ago.
Yuen Said Business Has Been Slower in Uptown in Recent Years. But la patisserie p -Known for Croissants and Asian-French Fusion Pastries-Is Still Well. Yuen Credits HIS BAKERY’S REASONABLE PRICES ON HIGH-QUALITY Items, Such as its barbecue pork buns for $ 3.75.
But the many vacant storefronts in uptown are a “Major Concern.”
He’s trying to adapt by coming up with distinctive Pastries and Looking for More Storage Space to Stock Up on Supplies.
Yet His Bakery Remains Steadfast in Spite of the Challenges. “We have been here Since 1982,” Yuen Said of His Second-Generation Family Business. “Surviving and striving is what we do, as chinese Americans will Through the Centuries.”
Contribing: AP
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