Customers of Asian supermarkets and specialty grocery stores across the United States were taken aback when former President Donald Trump targeted goods from numerous countries with elevated tariffs. Frequent shoppers at popular chains like 99 Ranch Market and H Mart had concerns about how the tariffs might affect prices of sought-after international brands such as Kewpie mayonnaise from Japan or Pearl River soy sauce from China.
These higher tariffs imposed by the Trump administration initially impacted imports from countries accused of unfair trade practices, introducing a 10% baseline tax on global products and steep reciprocal levies for specific countries. South Korea, Vietnam, and Cambodia faced tariffs up to nearly 50%, while China saw even larger hikes due to escalating trade tensions with the U.S.
Shoppers like Artis Chitchamnueng expressed concerns about potential price rises at stores like 99 Ranch, which offer a wide selection of Asian groceries at competitive prices compared to major retailers. Specialty stores serve as essential resources for immigrants and international students, offering familiar tastes and comforts from their home countries. An 18-ounce bottle of Lee Kum Kee Panda oyster sauce is a prime example of the price difference, costing less at specialty stores than at mainstream supermarkets like Safeway and Walmart.
In recent years, the demand for culturally specific foods has expanded far beyond the limited selection found in the ethnic aisles of mainstream supermarkets. The broader American appetite has embraced diverse flavors, supporting a grocery sector that generated $55.8 billion in revenue in the previous year, with a promising growth projection by 2029 driven by an influx of Asian and Hispanic immigrants and adventurous younger consumers.
Economist Nancy Qian from Northwestern University highlighted that consumers might resort to alternative options if faced with tariffs, noting past examples where families turned to substitute products. Smaller South Asian groceries like Not Just Spices in Rhode Island also brace for potential cost escalations. Owner Mohammed Islam remains optimistic despite the looming challenges, acknowledging that customers are aware of these trade developments and are unlikely to blame the stores for inevitable price hikes.
Similarly, Hispanic supermarkets in areas like Phoenix could face price increases due to potential tariffs on Mexican imports. Roommates Andrew Colvin and Mario Aviles, customers at Los Altos Ranch Market, expressed willingness to adapt their shopping habits to cope with expected price changes by limiting their consumption if necessary.
Experts have cautioned against panic buying but advised stocking up on non-perishable goods within reasonable limits to mitigate the effects of potential price increases. The economic burden may disproportionately fall on lower-income households due to the inherently regressive nature of such tariffs. Some believe the tariffs could reinforce the cultural significance of ethnic enclaves in cities, akin to historical districts like Chinatowns, which continue to serve as vital community hubs for accessing culturally relevant products.