The turmoil of tariffs has been painful for Chicago businesses that rely on China, which is the main target of President Trump’s trade wars. The businesses who are especially hurting include those in Chinatown and Uptown, two neighborhoods with large Asian communities.

Spencer Ng owns Triple Crown, a 200-seat restaurant in Chinatown that his mother founded in 1996.

In April, after Trump ordered 145% tariffs on China, some of Ng’s vendors raised prices on ingredients from China such as Sichuan peppercorns and red chili. The price for a case of canned water chestnuts jumped to $55 in May, compared to $35 the previous year. Costs for canned bamboo shoots and green tea have also shot up.

Takeout containers, commonly made in China, have increased from $25 per case last year to $32, Ng estimated. Plastic table cloths used to cost 25 cents each last year but are now 45 cents.

But Ng hasn’t raised menu prices because loyal customers of the family-owned restaurant are price sensitive. And it would also cost $6,000 to re-print menus, at a time when costs are volatile due to tariffs.

After U.S.-China trade talks in London last week, Trump said the U.S. will get a “total of 55% tariffs, China is getting 10%.” But details of the terms remain scarce.

Across the U.S. and in Chicago, Chinatown businesses were hit harder during the pandemic because they received less government aid and were targets of anti-Asian racism. Older immigrant owners with limited English language skills were less equipped to pivot to new technologies such as apps and social media. Now, tariffs are their latest challenge.

Spencer Ng, owner of Triple Crown, said some of the spices and green tea he uses at his restaurant have gone up by about 25% following President Donald Trump’s tariffs. Tyler Pasciak LaRiviere/Sun-Times

Ng is part of the newer generation of owners. But for Triple Crown, at 2217 S. Wentworth Ave., the latest cost spikes are part of the ongoing challenge of high inflation since the COVID-19 pandemic.

He estimated the overall cost of most ingredients and supplies have increased 10%-25%, or more. Monthly bills from his meat distributor were about $14,000 last year but are now about $22,000.

In May, the U.S. and China announced a 90-day truce. The U.S. lowered most tariffs on imports from China from a sky-high 145% to 30%.

But the reprieve wasn’t a complete relief for Ng. “The crazy thing is uncertainty. We don’t know what to expect anymore,” he said.

Ng isn’t stocking up on goods during the 90-day pause because he lacks storage space and doesn’t want to disrupt cash flow. In addition, some items from China take several months to ship to Chicago, and tariffs can change any time.

Ng had been readying to expand next door in a new space spanning three floors. He had ordered furniture, light fixtures, tiles and other materials from China. But because of tariffs, he paused the expansion.

Sea cucumber from China

At Sea Cucumber City, an herbal medicine and snacks store in Chinatown, 80% of products come from China, said manager Aina Lei. Bins and jars are filled with dried lotus seeds, salted fish, ginseng, sea cucumber and other items.

The store at 247 W. Cermak Road has raised prices of some goods from China in recent months, Lei said. For example, dried lotus seeds were $13 per pound in April but rose to $16.50 per pound last month.

In April, customers were stocking up on products, but purchases slowed down by May, Lei said. Before Trump took office, she had no idea that tariffs would affect Sea Cucumber City, which opened three years ago.

Lei also said the 90-day truce between the U.S. and China doesn’t give much relief to the business. Every day she is unsure what will happen next.

Clayton Xu, policy manager at nonprofit Coalition for a Better Chinese American Community based in Chinatown, said neighborhood shops that sell sundries from China such as housewares are especially vulnerable to tariffs. They cater to price-sensitive Chinatown residents, especially senior citizens. Tariffs are causing confusion among Chinatown business owners and customers, Xu said.

That’s especially so for shops in the older part of Chinatown along Wentworth Avenue, where business owners face more language, cultural and technology barriers.

Newer businesses closer to Chinatown Square include more franchises with tech savvy, networked owners, Xu said. They have more resources, while mom-and-pop shops with older owners tend to struggle more.

Chinatown was already seeing unbalanced growth between its older and newer parts, Xu said. The added pressure of tariffs could widen the divide.

The coalition’s forthcoming survey of Chinatown businesses found that many lack trust in government agencies and nonprofits, so they don’t use those resources when facing hardship. It can be harder to know if they need help, and sometimes they wait until it’s too late.

Uptown’s latest challenge

In Uptown, many Asian-owned businesses have been struggling since the pandemic. The neighborhood is known for its Southeast Asian community, whose main street is dubbed “Asia on Argyle.”

Tariffs add to their burden, said Chettha Saetia, economic development director at the Chinese Mutual Aid Association based in Uptown.

Before the pandemic, the neighborhood was bustling and it was hard to find parking, Saetia said. Now, more storefronts are empty, especially near Argyle Street. He estimated that 30% of stores are closed in Uptown.

For businesses that import ingredients and supplies from China, tariffs have raised costs by as much as 25%, Saetia said. In recent months, he has advised them to diversify sourcing away from China to Vietnam and Thailand, even though both are among some 60 countries Trump slapped with tariffs in April. A separate 90-day pause lowered most tariffs to 10% through July.

Customers browse the pastries and baked goods at La Patisserie P in Uptown. Pat Nabong/Sun-Times

In recent years, the mutual aid association has helped local business owners by connecting them to grants and government assistance. But many are still grappling with multiple challenges, including inflation, less foot traffic and gentrification.

“It’s one thing after another,” Saetia said, adding people can support Uptown by going out to eat and shopping at local businesses.

Peter Yuen, owner of La Patisserie P at 1050-52 W. Argyle St., said tariffs have been a wake-up call. Costs have rocketed for red bean paste and melon cake ingredients that only come from China, for example. Sacks of flour from China made from U.S. wheat costs $75, compared to $35 a year ago.

Yuen said business has been slower in Uptown in recent years. But La Patisserie P — known for croissants and Asian-French fusion pastries — is still doing well. Yuen credits his bakery’s reasonable prices on high-quality items, such as its barbecue pork buns for $3.75.

But the many vacant storefronts in Uptown are a “major concern.”

He’s trying to adapt by coming up with distinctive pastries and looking for more storage space to stock up on supplies.

Yet his bakery remains steadfast in spite of the challenges. “We have been here since 1982,” Yuen said of his second-generation family business. “Surviving and striving is what we do, as Chinese Americans do through the centuries.”

Contributing: AP