Flushing, New York. As the U.S.-China trade war intensifies under former President Donald Trumpโs administration, Chinese grocery stores across the United States are facing rising costs, dwindling inventories, and an uncertain future. The impact is particularly acute in immigrant-rich neighbourhoods like Flushing, Queens, where Chang Jiang Supermarket serves as a cultural and culinary cornerstone.
With tariffs on Chinese imports surging to 145% in recent weeks โ following a 20% hike in March โ small, community-based grocery stores are struggling to keep shelves stocked with staple items, from seaweed snacks and chilli oils to organic ginger and dried plums.
โIf the tariffs donโt come down, in two months there wonโt be any more inventory from China on the market,โ said Wu, manager of Chang Jiang Supermarket, speaking to CNN in Mandarin on condition that only his surname be used.
Grocery Prices Set to Rise Nationwide
While Chinese grocery stores face the most immediate strain, consumers across the U.S. will soon feel the effects of a broad 10% tariff on all imported goods. Items such as seafood, coffee, fruit, nuts, cheese, and candy bars are expected to rise in price, disproportionately affecting lower-income households that spend a higher share of their income on food.
โThe impact of these tariffs doesnโt stop at the border,โ Wu added. โIt ultimately hits the consumer, regardless of where the product is coming from.โ
At Chang Jiang, suppliers have begun rationing goods. Wu said he is now receiving just 5 or 10 units of products he would typically buy in quantities of 50 or 100. While current inventory prices remain relatively stable, new shipments could see price increases of 30% to 50%.
From Flushing to California: A National Concern
The repercussions of the trade war are being felt beyond New York. In Arcadia, California, Wing Hop Fung, a family-run business that imports tea and traditional Chinese herbs, is also struggling to navigate the rising costs of doing business with China.
โOur largest trading partner is China,โ said Lan Ong, who now runs the store founded by her parents in 1985. โWhen tariffs go up, it becomes a serious threat to small, minority-owned businesses like ours.โ
Ong told CNN affiliate KCAL/KCBS that she receives shipping containers valued in the six-figure range. But the moment those containers land in her warehouse, the new tariffs must be paid in full, putting immense pressure on already-thin margins.
Ethnic Grocers: A Lifeline for Immigrant Communities
Ethnic supermarkets such as Chang Jiang and Wing Hop Fung play a vital role in immigrant communities, offering familiar products and preserving culinary traditions. Whether itโs Lao Gan Ma chilli oil or fresh jackfruit, these stores stock items not easily found in mainstream retailers.
Phil Lempert, editor of Supermarket Expert, notes that demand for international and speciality groceries has grown steadily in recent years. โAmericans are more exposed than ever to global cuisines,โ he said. โThatโs reshaping the grocery landscape.โ
According to Fortune Business Insights, the global market for speciality grocery ingredients is projected to nearly double by 2032, from $81.6 billion in 2023 to $153.2 billion.
Major chains like H Mart and 99 Ranch have the infrastructure and capital to weather supply chain disruptions. But smaller, family-run operations โ many serving working-class communities lack that resilience.
Economic Uncertainty Breeds Supply Shortages
In Hawaii, the ripple effects of the trade war are being felt in Honoluluโs Chinatown. Chu Lan Shubert-Kwock, founder of the Chinatown Business & Community Association, warned of a chilling effect on local commerce.
โSmall businesses wonโt restock until they know how much their goods will cost and what they can sell them for,โ she told local affiliate KHNL/KGMB. โThe uncertainty is setting us back. Nobody wins in this trade war.โ
For Wu and his customers in Queens, that uncertainty is already changing shopping habits. Though Chang Jiang has yet to raise prices, Wu anticipates that will change once his current stock runs out.
โI encourage our customers to buy what they need now,โ he said. โBecause prices will certainly skyrocket in the coming months.โ
