Trump tariffs have led to drop in sales, say businesses in New York’s Chinatown

NEW YORK: The impact of the ongoing tariff war between the United States and China has trickled down to small businesses in New York's Chinatown.

Eva Sam, owner of Popular Jewelry on Canal Street, told CNA that her 37-year-old business has lost about 50 per cent of sales.

Sam designs and sells jewellery pieces, some worth thousands of dollars. The gold and polished jade used in making her jewellery is sourced from China.

US President Donald Trump has called China an unfair trading partner, with his administration gradually raising tariffs on Chinese imports to the US, reaching 145 per cent.

Meanwhile, businesses are scrambling to keep up with these tariffs.

“It’s tough, sometimes he is saying 140 per cent, sometimes 245 per cent, sometimes 50 per cent, now we’re not adding too much, just 10 per cent,” said Sam.

She hoped that Trump would not be adding “too much tariffs” in the future.

Adding to the tariff confusion are comments from Trump that trade talks are underway with China, which has been flatly denied by the Chinese Foreign Ministry.

SETBACKS NOT NEW TO CHINATOWN BUSINESSES

Business owners in Chinatown have suffered serious setbacks before, ranging from terror attacks to natural disasters and the COVID-19 pandemic.

In 2001, the 9/11 terror attacks not far from the district severely impacted the local economy.

In 2012, Hurricane Sandy tore through the city, leaving a trail of destruction.

Less than ten years later, the COVID-19 pandemic forced several businesses to shut their doors for good.

The Trump tariffs may soon force businesses in this bustling neighbourhood in Lower Manhattan to close, according to Chinatown Partnership, an advocacy group for local merchants.

The group supports local businesses in the district, and is monitoring how the tariffs have impacted shops in the area.

Its executive director Wellington Chen said it is inevitable that some businesses will not survive - but there are no projections yet on how many.

“One thing is for sure, even in the surveys just now, prices have gone up. The prices have all gone up,” said Chen.

He said that the cost of inflation was already going up prior to the tariffs.

“This certainly does not help because you know the election result was meant to ease the pressure except this is going in the opposite direction,” he added.

Chen added that voters had hoped Trump would lower existing inflation after being elected, but the tariffs he has imposed have made it worse. 

No plans have been reported by the city to provide financial relief to businesses.

Chen said even if there were, it is unlikely they would make up for the losses owners have incurred in recent years.

Local media reported that the New York state government would be giving what they call inflation refunds to individuals and families, ranging from US$150 to US$400.

BUSINESSES TRYING TO SURVIVE

Chinatown businesses said long-term planning can feel impossible amid the tariffs.

Chinatown Partnership’s Chen said merchants were stockpiling as many products as they could from their suppliers, before the costs of the levies filtered through on imports from China.

As the district is forced to fight for survival amid increasing costs, shop owners are looking to adjust their operations in the short-term.

For Popular Jewelry’s Sam, she intends to reduce her imports of Chinese goods and switch production to the US for some of these items.

She is also focusing on new payment plans and other incentives to keep customers returning to her shop.