Tariffs Hit Home: How Asian American Communities Bear the Brunt

While Trump claims tariffs will significantly impact the countries they target, experts argue that consumers and businesses will bear the brunt of the consequences.

Research by The Budget Lab at Yale University estimates that price levels may rise to 2% this year, equivalent to $3,000 per average household. Another report from D.C. stated that the new tariffs on China affect about 14% of U.S. imports and may raise costs to $25 billion annually. As the tariff war escalates, everyday consumers will face even higher prices.

Asian American communities and businesses are particularly vulnerable. In New York’s Chinatown, 28% of residents already live below the poverty line. With many companies relying on imports from Asia, owners are uncertain about their survival.

“Here in Chinatown, especially, we have many elderly residents on fixed incomes,” says Edward Lau, owner of a traditional medicine shop in San Francisco’s Chinatown. With 90% of his stock sourced from Hong Kong and China, he worries, “If it gets very expensive, their spending power will be lower. Chinese immigrants will ultimately be harmed the most.”

Taylor Chow, owner of American Tai Wah Trading Corp, adds, “The Chinese community in Chinatown has been hit hard most because we consume a lot of imported ingredients. A lot of products only come from China. Even if manufacturers try to move their production line to Vietnam, to Malaysia, to Singapore, it’s not that easy.”

Supply chain disruptions and rising costs are straining small Asian American businesses. Since the community depends on these shops for cultural goods, they, too, will feel the pressure.

Mei Lum, owner of Lum’s Store, the longest-operating business in Manhattan’s Chinatown, explains, “Our working-class community here in Chinatown is definitely, in these circumstances, always being hit the hardest. 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?”

The erosion of these businesses could lead to cultural loss, impacting food, traditions, and ceremonial products. Lucas Li, whose family runs Lion Trading in San Francisco, specializing in feng shui and spiritual supplies, says, “When they get expensive, it makes it harder for Chinese people, for their families to maintain those traditions and do it at the proper steps. When customers shop at local businesses and small businesses, they’re not just buying a product, they’re basically investing in the community, supporting families, and protecting our traditions.”

Large online retailers like Shein, Temu, and AliExpress are also affected. While it is unclear how much product prices will rise on these e-commerce platforms, experts predict delivery delays and price hikes due to tariffs. Youssef Squali, an analyst at Truist Financial, notes, “The vast majority of these orders are valued less than $800, which means all or virtually all of them are going to get caught in that.”

Ultimately, Asian Americans may feel the greatest impact. As Linda Chao, a resident of Oceanview, states, “When there are tariffs, it won’t fall on China, it’ll fall on us. It can’t be helped. I also don’t have time to go and protest. I feel there’s nothing we can do.”

Sources: NBC News, The Chronicle, AP News, University of Virginia, The Guardian