San Francisco small businesses are feeling the uncertainty of a 90-day tariff pause on Chinese imports. The temporary reduction in tariffs has sparked confusion among business owners like Edward Lau, who are trying to determine what and when to order from Chinese importers.
Lau’s herbal medicine store has raised prices by 10-20% since March to remain competitive with similar stores in San Francisco’s Chinatown. However, customers continue to ask about price stabilization, which is above his pay grade. The uncertainty of the tariff pause has Lau anxious, as a decision to purchase too little now could hurt his bottom line if tariffs increase again later this year.
The 90-day tariff pause has also caused immediate changes in the supply chain. Operators of bonded warehouses have seen requests to remove goods, while container-tracking software provider Vizion reports a surge of nearly 300% in U.S. container bookings from China soon after the announcement.
However, many larger companies are still asking for long-term bonded storage due to uncertainty about the future of the trade agreement. For small players like Lau, this uncertainty creates hardship every day and has even led to personal concerns, with his son questioning whether running a small store is worth it.
The U.S. lowered its tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%. The agreement is set for 90 days, during which both nations will engage in further trade discussions, leaving Lau and other small business owners waiting anxiously for clarity.
Source: https://www.cbsnews.com/sanfrancisco/news/san-francisco-small-businesses-in-flux-tariff-pause