CAPAC Holds Press Conference on Economic Toll of Trump’s Tariffs on Asian American Businesses
WASHINGTON, D.C. — Today, Rep. Grace Meng (NY-06), Chair of the Congressional Asian Pacific American Caucus (CAPAC) hosted a press conference with Democratic Caucus Vice Chair Ted Lieu (CA-36), CAPAC Second Vice Chair Jill Tokuda (HI-02), Chair Emerita Judy Chu (CA-28), and CAPAC members Rep. Dave Min (CA-47) and Rep. Ed Case (HI-01) on the devastating impacts of President Trump’s tariffs on Asian American businesses and communities across the country.
“President Trump promised to lower costs on day one, yet costs have skyrocketed due to his tariffs — especially for the over three million Asian American, Native Hawaiian, and Pacific Islander-owned businesses across our nation,” said CAPAC Chair Grace Meng. “These mom-and-pop stores are being forced to make an impossible choice: raise prices or close their doors for good. We refuse to be treated as collateral damage in the administration’s trade wars, and CAPAC will continue fighting for lower costs and a more affordable America.”
On August 29, a federal appeals court ruled that most of Trump’s tariffs are illegal but allowed the tariffs to remain in place while the case moves through the appeals process. Last week the Supreme Court agreed to consider the appeal on an expedited timeline. Meanwhile, tariffs continue to create uncertainty for small businesses and consumers—including for Asian-owned businesses that import agricultural goods, cultural products, and traditional medicines that cannot be produced domestically.
Asian American entrepreneurs own 11 percent of small businesses in the U.S. and nearly 20 percent of restaurants that can be found in 70 percent of counties across the country. Chinatown businesses in particular have reported lower demand and increased costs for goods, with some hiking prices by an average of 50 percent. According to the latest Consumer Price Index (CPI) report, consumer prices rose 0.4 percent in August, driving the annual inflation rate to 2.9 percent, the highest since January, in part due to Trump’s tariffs.
Asian grocers like Uwajimaya in Seattle that import over half of their items from Asia are now forced to raise prices in response. Consumers are cutting back on salon visits in order to save money due to rising costs from tariff policies, with 42 percent of typical salon patrons going less in the last six months in favor of at-home treatments and 24 percent giving up those services entirely.
Many Asian-owned businesses have not recovered from the pandemic and already operate on thin margins. These businesses cannot afford to absorb higher costs from Trump’s tariffs, but are hesitant to raise prices, especially for seniors living on fixed incomes and working-class Americans. These uncertain economic conditions come on the heels of Trump’s Big Ugly Law that makes life harder for working families by kicking more than 15 million people off their health insurance and raising the costs of food and utilities.
Goods affected by Trump’s tariffs include basmati and jasmine rice, beef, shrimp, salmon, tuna, tilapia, dried fish, ginseng, Goji berries, Korean and Japanese cosmetics and skincare products, traditional Chinese medicine, matcha, loose-leaf tea, soy sauce, oyster sauce, hoisin sauce, Sichuan peppercorn, black pepper, cumin, turmeric, chili powder, paneer, kimchi, dry noodles, joss papers, incense, takeout containers, cell phones, computers, clothing, shoes, and more.
View or download full video remarks from the speakers during today’s press conference here.
View or download photos from today’s press conference here.
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