Policies and trade practices in the United States have resulted in tariffs on goods, especially from imports from Asia, including China, Vietnam, and South Korea. Tariffs have risen on the grounds of national security or as a form of economic protectionism, as tariffs in some cases have approached duties of 55%. The stated objectives have been to incentivize locally sourced manufacturing, decrease trade deficits, and engage in fairer competition. However, tariffs have begun to affect impacts beyond large corporations and foreign producers down to a spectrum of American consumers and small businesses, including many that are Asian American-owned.
Asian American business owners are essential to highly import-dependent industries, including specialty food, retail, textiles, and beauty products. Each of these businesses has a supply chain connected to Asia for importing goods, which becomes more expensive and takes longer to ship. As they are frequently small businesses or family-owned and operated, profits tend to be slim and have a lower tolerance for increased costs. While some business owners have indicated a struggle to maintain pricing competitiveness without further changes to their business, others have decreased stock or switched to imported goods that do not cater to the same consumer preferences.
Concern has been raised by community and industry organizations, including the Congressional Asian Pacific American Caucus (CAPAC), stating that the increased tariffs are too disruptive for Asian American business owners, especially smaller businesses. CAPAC and local chambers of commerce note that many small importers cannot afford to quickly adapt their capital or logistics. They believe that tariffs may be a way to redress international economic imbalances, but they could also create a different burden on minority-owned small businesses within the local economy. Despite this, supporters of tariffs argue that it is necessary to limit reliance on foreign manufacturing and protect American jobs.
It is unclear how the tariffs will impact Asian American communities in the long term. For some, they provide the opportunity to regionalize production and strengthen domestic supply chains, while others face existential threats to their long-term business models that were built over decades. As the U.S. balances its trade priorities with the need for domestic economic stability, policymakers will face the challenges brought about by these uneven results. The experiences of Asian American business owners will help shed light on how global trade decisions may have direct consequences on the aspects of employment, small business, and community development across the U.S.
