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May 15, 2025

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“Unveiling the Impact of Tariffs on Chinatowns: Why Sales are Slowing Down”

In Los Angeles’ Chinatown, immigrant-run businesses are feeling the harsh impacts of the trade war between the US and China. Amy Tran, owner of Yue Wa Market, faced a significant price increase on Chinese imports due to new tariffs, forcing her to raise prices on essential products like Shou Wu Chih, affecting her primarily Chinese senior clientele. Similarly, Robert Lee of Jin Hing Company, a jewelry and antiques shop, anticipates sourcing jewelry from more expensive alternatives if tariffs persist, highlighting the challenges faced by long-standing businesses.

The trade war not only affects imports but also impacts businesses on the export side, with decreased demand for antiques from US customers in China due to retaliatory tariffs. This economic strain poses an existential threat to the fabric of Chinatown, as community-serving businesses like grocery stores and gift shops struggle to stay afloat, impacting the residential and commercial ecosystem of the neighborhood.

Furthermore, as Chinatown faces ongoing challenges like gentrification and declining foot traffic, the trade war exacerbates existing uncertainties for business owners, contributing to the shrinking housing and employment opportunities for working-class Asian immigrants. Mary Lu Wang of Jadetime e-Gifts reflects this sentiment, noting the decline in tourism and changing demographics as more pressing concerns for her business than the tariffs.

With the median household income in LA’s Chinatown well below the county average, the financial strains caused by the trade war deepen the economic hardships faced by the predominantly working-class and elderly Chinese community. As these businesses navigate the uncertain future, the resilience and adaptability of Chinatown’s entrepreneurs remain crucial in preserving the neighborhood’s cultural heritage and economic vitality.

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