International grocery stores brace for price hikes from Trump tariffs

The Herald Scotland

21-04-2025

"It's frustrating," he told USA TODAY. "We don't want things to change, but there's nothing we can do."
Across the U.S., small, family-owned international grocery stores are bracing for increased prices after Trump imposed a 10% universal import tax and a staggering 145% duty on Chinese imports.
For stores like Hung Phat Grocery - which imports more than 90% of its products - the tariffs could cause seismic shifts to their business, impacting not only how much their items cost but what they continue to carry.
There's also great uncertainty as Trump seeks negotiations with China and begins talks with other counties whose larger tariffs were delayed by 90 days. Some of the threatened duties would have hit Asian countries particularly hard, including Vietnam (46%), Thailand (36%), Cambodia (49%), South Korea (25%) and Indonesia (32%).
In the meantime, grocers selling international foods are trying to gauge how much their distributors will raise prices and whether they should buy in bulk - a risk especially for perishable foods.
"We're very worried," Ung said.
Stores may have to substitute Chinese goods
In Pittsburgh, Pennsylvania, family-owned Lotus Food is weighing its options.
Half of what's on the store's shelves is imported from China, and with the escalating back-and-forth between the world's two largest economies, some of those products - soy sauce and rice noodles, for example - may no longer be feasible to carry, said manager Joy Lu.
"Worst case, we don't buy anything from China and we look for substitutes," she said. "We'll sell what we can from Thailand, Indonesia, Taiwan, Japan, Korea."
Lu said most of the store's suppliers have several weeks worth of inventory that isn't affected by the tariffs. But after that, they'll begin taking on the increased costs and raising prices in store. She expects it'll hurt business as she and others have already seen customers spending less.
"Hopefully it's short and China can negotiate, otherwise it's going to be bad for everybody," she said.
Middle Eastern grocers brace for tariffs
It's not only Asian grocery stores that are preparing for higher prices. At Halalco Halal Meat Groceries in Falls Church, Virginia, manager Awais Mohammed has been in constant contact with vendors.
"We are asking them 'Please, if you have to go up 10%, don't do it right away,'" he said. "We want to give our customers time to balance their expenses."
The market offers a wide range of food, from halal meat to pita bread, baklava, preserves and lentils. Most of the store's items are imported from Turkey and Lebanon, both of which are subject to Trump's universal 10% tariffs.
The uncertainty is also being felt at Hilal Groceries in Des Moines, Iowa. Salah Salah, who owns the store with his parents, said his biggest challenge is figuring out what supplies to order and how much. Not even their vendors can help, he said.
"You call our big vendors, like: 'Hey, what's going on? Do I need to buy a lot of this stuff and store it?' And they're like, 'We don't know.'"
Tariffs are the latest financial challenge for specialty food grocers
Before the tariffs, grocers and consumers were already contending with higher prices for basic items like eggs and beef.
In the last year, the price of food went up 2.5%, according to the U.S. Consumer Price Index, which tracks inflation. In March the cost of meat, poultry, fish and eggs rose 1.3%, primarily fueled by the bird flu outbreaks that have forced farmers to destroy more than 10 million egg-laying hens across the country to prevent the spread of the disease.
Philavanh and Roza Katembo run Tanganyika Grocery Store, a shop specializing in African products in Des Moines. They said because of rising wholesale prices, they've have had to raise theirs to break even or make a profit.
They previously sold 22-pound bags of corn flour, often used to make fufu, a starchy West African dish, for $25. Now, they're $40. The price of cassava leaves at the store has doubled from $5 to $10.
At La Tienda Mexicana, one of Des Moines first Mexican grocery stores when it opened more than 30 years ago, owner Alonso Magallanes says he has noticed a decline in customers over the last few months.
"I think people are trying to save the most money they can just in case something happens," said Magallanes, standing behind the checkout counter, his fingers intertwined around his apron strings.
He also suspects some of his customers are afraid of the Trump administration's anti-immigration policies. Tattered signs taped to street lights near Magallanes' small store read: "Don't open for ICE."
'We just have to hold tight'
It's been a hard few months for Hung Phat Grocery.
Since January, the specialty shop has seen a 20% drop in revenue, which Ung credits to shoppers spending less and the mass layoffs of federal workers, a customer base he had long relied on. Tariffs, he said, are just the latest upheaval.
"We just have to hold tight," Ung said. "I tell my employees, 'We will make it through together.'"
Ung opened Hung Phat Grocery more than 30 years ago, after the success of a rice noodle kitchen he started with his brother across the street. Today, he runs the five-aisle store with his wife, his son and about three other employees who he said are like family.
That family also includes his customers, many of whom are immigrants reliant on Hung Phat Grocery for a taste of home and ingredients they can't find at larger American supermarkets.
Because of this close bond, Ung said raising prices is a torment. He speaks with his customers on a daily basis, hears their concerns and knows many are operating on fixed budgets. While he's absorbing what he can for now, prices will have to go up if nothing changes.
"I pray for negotiations," he said. "This is making everybody crazy."