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Asian grocery stores, a lifeline for immigrants, brace for steep new tariffs

JUANA SUMMERS, HOST:

President Trump's sweeping tariffs are underway. Among the businesses especially worried are Asian grocery stores, which heavily depend on imported goods. NPR's Juliana Kim traveled up and down northern Virginia to talk to grocery store owners about how they're navigating this moment. Hi there.

JULIANA KIM, BYLINE: Hi.

SUMMERS: So Juliana, tell us what you've been hearing from these grocery store owners.

KIM: Yeah, so I visited Korean, Filipino and South Asian markets the other day, and all the owners expressed the same emotions - I mean, worry, dread, shock. Alvin Lee, who's the president of an international supermarket chain, Lotte Plaza Market, told it to me like this.

ALVIN LEE: Just stunned by the breadth and the amount and the speed of the tariffs.

KIM: You know, at these grocery stores, nearly all their products are imported from overseas. And they're also coming from countries expected to be hit with some of the highest reciprocal tariffs, ranging from 17% for the Philippines to 46% for Vietnam. And then there's China, which is facing an additional 34% in tariffs, bringing the overall rate to 54%. And it may be possibly higher with today's threats.

SUMMERS: Juliana, do these grocers know what they're going to do if imports get more expensive?

KIM: Lee told me that some of his suppliers are already planning to raise prices. You know, he's hoping they'll be willing to split some of the burden on tariff costs in order to keep prices affordable for customers. The thing is these stores aren't just popular because they offer unique foods. They still need to be competitive on price, and that's been increasingly tough to do. Lee told me his grocery chain has already been operating on tight margins for years due to rising labor costs and energy costs.

LEE: We've already cut down to the bone so we could keep the prices low for our customers.

KIM: And it's not just Lee. I heard the same thing from other store owners.

SUMMERS: So do you think the tariffs might threaten the future of some of these grocery stores?

KIM: Unfortunately, yeah. You know, if these grocery stores have to raise prices again, the owners of smaller shops, in particular, worry whether their businesses can survive. I spoke with the manager of a small South Asian grocery store in Falls Church, Virginia, that's been around for almost 18 years. You know, despite being near a big Harris Teeter, the store is often busy with loyal customers who are attracted to their sweets and fresh fish directly from Bangladesh.

DOLA HUSSAIN: Some customers come in, and their children are like, oh, my gosh, this is just like Bangladesh.

KIM: That was Dola Hussain. She's 19, and her dad owns Paak Bangla Bazaar. And the shop not only means a lot to her customers but also to her family. You know, this is their main source of income and what Dola's dad hopes will be his legacy.

SUMMERS: Well, do you know how the customers of these grocery stores are feeling?

KIM: They're also stressed. I mean, this is coming at a time when customers across the board have been feeling the pinch when they go to the grocery store. But what was interesting to hear is that, despite the possibility of higher tariffs, some shoppers are committed to supporting their local businesses. That's what Lina Le told my colleague, Emma Bowman, outside of Yama Sushi Marketplace in Los Angeles.

LINA LE: We have to adjust our lifestyle with everything. But at the same time, I don't want to not support our community and then losing all these, you know, mom-and-pop stores.

KIM: It's why when Le's kids earned a lunchtime treat, she chose to get sushi at Yama.

SUMMERS: NPR's Juliana Kim. Thank you so much.

KIM: Thank you.

(SOUNDBITE OF MUSIC) Transcript provided by NPR, Copyright NPR.

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Juliana Kim
Juliana Kim is a weekend reporter for Digital News, where she adds context to the news of the day and brings her enterprise skills to NPR's signature journalism.
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