Tariffs compound mounting pressures on Asian American grocers nationwide

Asian American grocers across the country are confronting a perfect storm of economic pressures, as President Donald Trump’s tariffs push import costs sharply higher while these small businesses simultaneously grapple with rising rents, theft and the lingering effects of the COVID-19 pandemic.

State of play: The tariff burden weighs heavily on Asian American grocers importing staples. John Wong, whose Wong Kai Imports has operated in Bradenton, Florida, for over four decades, confronts up to 30% levies on Chinese merchandise that represents over half his stock, with rates potentially rising again after a tariff truce expires Nov. 10. “It came in at $2.75 last year. Then, at the beginning of this year, it went up to $3.95,” he told WUSF. “We just had this shipment come in yesterday — it’s $5.”

Chicago’s 88 Marketplace manager Jan Zhu told the Chicago Sun-Times that the 15% South Korean import tariffs force the store to pass along cost increases despite absorbing what it can. In Wichita, Asian Groceries reportedly faces an even steeper 50% levy on Indian products, which comprise 65% to 70% of inventory. In Tucson, Pamilihan Pinoy Asian Grocery owner Rica Pijuan told 13 News in August that 19% Philippine tariffs mean it is hard to sell products, which are also in limited supply.

Broader implications: A July poll by AP-NORC revealed grocery costs generate major stress for roughly half of American adults, with another third reporting minor anxiety. For Asian communities, ethnic markets face disproportionate tariff impact because imported inventory dominates their shelves, while specialty products lack domestic alternatives. With grocery stores typically operating on razor-thin profit margins of about 2% to 5%, even modest tariff increases can push small retailers toward closure.

A Chinatown casualty: The compounding pressures have already claimed casualties. Amy Tran, 57, spent nearly two decades running Yue Wa Market in Los Angeles’ Chinatown before closing last week. After Chinatown’s last pair of full-service supermarkets closed in 2019, the small shop at 658 N. Broadway became crucial for Asian and Latino residents seeking fresh food. The pandemic slashed foot traffic as customers relocated to other areas, and recovery never came. Despite securing loans while rent escalated to $3,450 monthly, Tran faced compounding setbacks when summer Immigration and Customs Enforcement (ICE) operations deterred loyal patrons and suppliers. Theft became routine, with security cameras capturing robberies that cost the family tens of thousands of dollars. Her son, Derek Luu, left New York to assist with the closure. “She doesn’t want to let go of the store. But she just feels very hopeless about the situation,” he told LAist.

Moving forward: Across the country, grocers face uncertainty about their survival. In July, Seattle’s Uwajimaya CEO Denise Moriguchi told the Seattle Times that with current margins, price increases are inevitable: “It cannot all be absorbed by the distributors and the retailers. For sure, it will be felt by everyone.” Meanwhile, the customers who relied on these stores must adjust to closures and rising prices, with immigrant communities bearing the brunt of these economic shifts.