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      in US Politics

      From peppercorns to plastic forks: US businesses that rely on Chinese products reel from Trump tariffs

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      Chang Chang, a Sichuan restaurant in Washington DC, was already noticing that some of its business had dropped off after tens of thousands of federal workers living in the area lost their jobs. But the recent tariff rate hikes mark an even greater blow for the restaurant.Sichuan peppercorns, which create the signature numbing spice of the regional Chinese cuisine, along with other ingredients, face an at least 145% tariff after last week’s tit-for-tat trade battle between China and the United States. The steep rate is an existential threat for restaurants across the country that rely on specialty ingredients imported from China to craft the authentic flavors of their dishes, said operators who were blindsided.“We’re really worried,” said Jen Lin-Liu, the director of events for Chang Chang. The restaurant is part of the Peter Chang restaurant group that operates a dozen Sichuan restaurants across Washington, Virginia and Maryland.The restaurant group sources meats and vegetables from local farmers, including an Amish community in the Finger Lakes region that supplies its shiitake mushrooms and organic pork. Still, it is dependent on imported items such as fermented chili peppers and soy sauce, which give the dishes their unique taste.“Some of the products that we need just do not exist in the United States,” Lin-Liu said.The cost of other items is rising as well. “There are increases in any supply you can think of, from takeout boxes to printer paper to menu printing paper,” she said, adding that if the tariff rates stick, the price of a $20 dish may rise to $35 or $40.View image in fullscreenGeorge Chen, the chef who created Eight Tables, a fine-dining restaurant in San Francisco, said that while some of the items on his menu may be replaceable with options from Taiwan, it undermines the integrity he’s put into sourcing the unique ingredients for his dishes.“Replacements disrupt complex long-term relationships,” explained Chen. “It took me years to find the special spice vendors or the organic tea farmer in China from my many years living and working there.”Eight Tables is part of a larger marketplace called China Live, which includes a dining hall, a cold-drinks bar and a shop that sells wares including chopsticks, glass tea mugs and pots.“The area most concerning is our retail platform,” said Chen. For those items, “it’s not possible to re-order at the tariff rates”.For direct importers, like the Mala Market, an online shop, the tariffs on Chinese products threaten its entire business model. Sichuan peppercorns are popular on the site, but it also sells a number of items produced in their original region using traditional methods. The owner, Taylor Holliday, calls these “heritage products”, which include soy sauce handcrafted in Zhongba, fermented soybeans aged for three years in Sichuan and sesame paste stone-ground in Shandong.“These are products which have been made in that exact area for hundreds if not thousands of years,” said Holliday. “They have such a history, there’s no way these products can be made anywhere else.”While part of Holliday’s business supplies wholesale items to restaurants around the country, the majority of its orders are from home cooks.“A lot of our customers are people who have a cultural or emotional attachment to China,” Holliday said. “It’s more than just the food, it’s a cultural attachment to these products.”EMei, a Sichuan restaurant in Philadelphia, sources not only its peppercorns from China but also items such as chopsticks and plastic cutlery for takeout orders. Similar to many Chinese restaurants, delivery is a major part of the restaurant’s business.“So far, this is the main impact for us,” said Dan Tsao, the owner of EMei, who said the tariff hikes add about $1 to $1.50 to each delivery order.The tariffs may also create a supply issue for these items.“Importers are pausing more of their orders from China. They think 125% is crazy,” Tsao said.While the restaurant sources many of its ingredients from local farmers, it still relies on some imports from other countries. It orders broccoli from Mexico, shrimp from Ecuador and rice from Thailand. Rice is especially critical; the restaurant runs through a supply of about 200 pounds each night, Tsao said. Since Donald Trump’s “liberation day” announcement earlier this month, the price per pound has already risen more than 25%.View image in fullscreenThe frenetic nature of the tariff policy shifts has left owners and suppliers cautious about which steps to take and how to plan for the future.Tsao has plans to open two more restaurants later this year and has noticed some construction estimates for renovations rising. Most of the building materials come from China, too.“I’m hesitating now,” he said. The possibility of a recession while the prices of supplies and renovations keep going up may change his calculation. “There will be all these ripple effects on the system and there’s so much economic uncertainty,” he added.Holliday said she has one container of product already on the way from China that is scheduled to clear US customs in about five weeks, but will not raise prices until she is forced to.“I’m praying that something happens by then,” she said. But if it doesn’t, she’s resigned to paying the tariffs.“There’s no other way we can run our business,” she said. More

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      in Elections

      Brace Yourself. Trump’s Trade War With China Will Get Even Uglier.

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      Voters elected Donald Trump in part because they wanted a fighter. But increasingly it seems that in international trade, he’s good at shaking his fist for the cameras but utterly outclassed when he steps into the boxing ring.Indeed, Trump may be more dangerous to his own side of a trade war than to the other guy.Even after Trump’s climb-down — declaring a 90-day pause on many of the “Liberation Day” levies that sent the stock market reeling — America’s tariff rates remain the highest in more than 90 years. They amount to an enormous tax hike on consumers, with researchers previously estimating that they might add something like $1,700 in costs per year to a middle-income American family. They’re a reason many economists fear that the United States is slipping into a recession.The most heated trade war is with China, and it’s there that I fear Trump has particularly miscalculated. He seems to be waiting for President Xi Jinping to cry uncle and demand relief, but that’s unlikely; instead, it may be the United States that will be most desperate to end the trade conflict.China does have serious internal economic challenges, including widespread underemployment and a deflationary loop with no end in sight. The trade war could cost China millions of jobs, and that raises some risks of political instability.Yet it’s also true that China has prepared for this trade war. I’m guessing some Chinese factories are already printing “Made in Vietnam” labels and preparing to ship goods through third countries. And China will fight with weapons that go far beyond tariffs.China buys agricultural products and airplanes from America, and it can almost certainly get what it needs elsewhere. But where is the United States going to get rare-earth minerals, essential for American industry and the military-industrial base?We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      in US Politics

      Finally, the Trump regime has met its match | Robert Reich

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      It was bound to happen.Encouraged by the ease with which many big US institutions caved in to their demands, the Trump regime – that is, the small cadre of bottom-feeding fanatics around Donald Trump (JD Vance, Elon Musk, Russell Vought, Stephen Miller and RFK Jr) along with the child king himself – have overreached.They’ve dared China, Harvard and the supreme court to blink.But guess what? They’ve met their matches. None of them has blinked – and they won’t.China not only refused to back down when the Trump regime threatened it with huge tariffs, but also retaliated with huge tariffs of its own, plus a freeze on the export of rare-earth elements that the US’s high-tech and defense industries depend on.Harvard also pointedly defied the regime, issuing a clear rebuke to its attempt to interfere with academic freedom.The supreme court – in a rare unanimous decision – ordered Trump to facilitate the return of a legal US resident wrongly deported to a dangerous prison in El Salvador, without any criminal charges.But the White House was defiant. On Monday, both Trump officials and El Salvador’s president, Nayib Bukele, said they could not return Kilmar Ábrego García.“Of course, I’m not going to do it,” Bukele said when asked. Trump sat by his side with a smile on his face. The US attorney general, Pam Bondi, joined in the cruel imitation of justice: “That’s up to El Salvador if they want to return him.”What’s next?I suspect the testosterone-poisoned lackeys around King Trump are urging him to hit back even harder, escalating their confrontations with China, Harvard and the supreme court. They view these showdowns as ultimate tests of the regime’s strength.Think of it – they must be telling themselves and their boss – what prizes! If they defeat China, they have brought the world’s other economic powerhouse to its knees!If they defeat Harvard University, they have been victorious over the world’s intellectual powerhouse!skip past newsletter promotionafter newsletter promotionIf they defeat the supreme court, they have conquered the entire US government!Win these battles and no one will ever again doubt the power and resolve of the Trump regime!Hopefully, Trump is smarter than this. He knows these three institutions will not back down. They are rich and powerful enough to defy Trump’s escalating threats and demands. They cannot and will not cower.If Trump escalates his wars against them, they’ll become even stronger in the eyes of their supporters and constituents, and much of the world.The American people will see that Trump is actually a blowhard with no real power at all.So if he’s smart, Trump will try to de-escalate these three conflicts.He’s already hinted at an off-ramp with China. He will probably find some way to claim that Harvard has capitulated to his demands. He will avoid a showdown with the supreme court.But keep a watch on these three. They are Trump’s most formidable foes. If he doesn’t understand this and instead succumbs to the urges of his power-crazed lackeys, the Trump regime’s days will in effect be over before it even completes the first hundred of them.

      Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

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      in US Politics

      The mysterious firing of a Chinese professor has Asian students on edge: ‘Brings chills to our spines’

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      When FBI and Department of Homeland Security (DHS) agents descended recently on two homes owned by Xiaofeng Wang, a Chinese national and cybersecurity professor at Indiana University, many in the idyllic college town of Bloomington were shocked.In December, Wang had been questioned by his employers about allegedly receiving undisclosed funding from China on a project that also received US federal research grants. On the same day of the home raids, Wang was fired from his longstanding post at Indiana University over email – a move that goes against the university’s own policy.But Wang hasn’t been charged with any offence, and his lawyer says no criminal charges are pending.The incident has driven fear into the hearts of Bloomington’s Asian community of faculty and students who fear a political motivation.“I study at the computer science department, and I’ve overheard Chinese professors talking about how worried they are that something similar could happen them, too,” says a Chinese PhD student who came to Bloomington from Suzhou, Jiangsu province, last September and who asked not to be named given the sensitivity of the issue.During the first Trump administration, the Department of Justice created the China Initiative in an effort to find and prosecute spies for Beijing working in US research and development sectors. At the time, it was criticized by rights groups for fueling racial profiling and violence against Asian Americans, and a review by the Biden administration saw the effort ended in 2022.Now as before, Trump has made targeting universities whose leadership and faculty he believes run against his own agenda a key element of his second term.For the Massachusetts Institute of Technology professor Gang Chen, what happened to Wang “brings chills to our spines”.“What is particularly troubling in this case is that Indiana University fired him and his wife without due process, presuming guilt instead of innocence,” Chen says.Chen, who has US and Chinese nationality, found himself charged by the Department of Justice for allegedly failing to disclose links to Chinese organizations on a grant application for a federally funded project, with just weeks remaining in Trump’s first term, in January 2021.The charges were dismissed a year later.“The investigations on Professor Wang and his firing creates huge fear among researchers of Chinese descent, especially students and postdoctorates from China. It is clear that such events, together with legislation and hostile rhetoric, are driving out talents. I learned that many Chinese students and postdoctorates here are considering leaving the US.”More students from China come to the US to study and research at third-level institutions than from any other country.The fear of Chinese spies operating in the US isn’t completely unfounded.A report released recently by US intelligence agencies found that China remains the top cyber threat to America, and many politicians on the right believe smaller colleges in low-key parts of the country such as the midwest could be used as gateways into the US by the Chinese Communist party.In October, five Chinese students at a college in Michigan were charged with spying on a military training camp where Taiwanese soldiers participate. This month, information on several Chinese students at Purdue University, also in Indiana, was sought by members of Congress, claiming national security interests, though no charges have been brought.But the vast majority of the estimated 300,000 Chinese academics and students in the US today are in the country to legitimately contribute to research and to learn, say experts who fear that Trump’s targeting of colleges deemed to be antisemitic may now be shifting to the midwest.Last month, the Department of Education named Indiana University Bloomington among 60 colleges under investigation for alleged antisemitic discrimination, a move that could result in funding cuts.It’s not only Chinese academics and students who could be affected.Universities in Illinois, Indiana and other heartland states are home to some of the largest Chinese student populations in the country.Nearly half of Urbana-Champaign’s combined population of 130,000 people in neighboring Illinois is made up of college students and staff. Nearly six thousand are students from China.In Bloomington, which has a population of under 80,000 people, close to 50,000 are students, with nearly 10% coming from overseas.Midwestern colleges and the communities around them are keen to attract international students and rely heavily on the money they bring with them; about 2,000 Chinese students enroll at Indiana University every year. International undergrad students are charged an average of $42,000 in tuition and fees, alongside $14,000 in housing and food, bringing hundreds of millions of dollars into the college and town.Over the years, these and other small university towns have come to rely on international students to prop up their economies.A couple of blocks west of the University of Indiana Bloomington campus, a grouping of Chinese, Korean and Asian eateries cater to the college’s large Asian community. The sidewalk in front of the Longfei Chinese restaurant is dotted with food signs written in Mandarin. The restaurant’s manager, however, says he believes that the political problems between Washington and Beijing have seen the number of Chinese students coming to the US – and through his doors – fall in recent years.The Chinese PhD student, who one recent morning is here grabbing lunch, says his student visa status allows him to stay in the US for up to five years, but he and his Chinese colleagues are worried that the Trump administration may cut that short.“I’m concerned with President Trump’s hostility against China and this kind of hostility may affect Chinese students and professors, and the funding that we get,” he says.“I’m concerned about the impact on my life.”Faculty at the department where Wang worked for more than two decades have called for Indiana University to revoke his dismissal. His profile page on the University’s website has been removed and college authorities have not commented on his firing.“Neither Prof Wang nor Ms Ma [his wife, who worked as a library analyst at the same university] have been arrested … further, there are no pending criminal charges as far as we are aware,” says Jason Covert, a lawyer at Taft Stettinius & Hollister, a firm representing Wang and Ma.“They look forward to clearing their names and resuming their successful careers at the conclusion of this investigation.”Covert would not say whether Wang planned to remain in the US. More

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      in Elections

      Amazon Sellers Struggle with Trump’s Tariff Plans

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      When President Trump announced tariffs this month on goods from all over the world, Jing and Eddie Levine, who sell party supplies on Amazon, were on a flight home to Chicago after visiting suppliers in Asia.Amazon was the center of their life. They met at a conference for Amazon sellers in 2016 and had their first kiss at another Amazon conference two years later. They moved in together and grew their business, Treasures Gifted. When they married in 2022, they threw an Amazon-themed wedding, with guests assigned Amazon product numbers instead of table numbers.The Levines tried to make sense of the news. The giant poster that Mr. Trump pointed to during a Rose Garden ceremony on April 2 showed that China would be hit with large tariffs, but so would every country they had just visited — and almost every country on the planet, for that matter.“Thank God the Wi-Fi on the plane was not bad this time,” Mr. Levine said, “because I would have had a heart attack.”The balloons, plates and decorations that the Levines import are just a speck in the trillions of dollars in goods that swirl around the globe. A week after Mr. Trump announced his so-called reciprocal tariffs, he pulled them back for most countries for at least 90 days, while sending tariffs on China even higher.Countries or major companies may be able to lobby the president for a break, as he seemed to give Apple and other electronics makers over the weekend. But the best the Levines of the world can do is wait for news updates and hope their plans haven’t been shredded by Mr. Trump’s vision for unraveling decades of global trade. And like thousands of other small-business owners who sell online, the Levines are struggling to adapt to an e-commerce system that let them tap into international markets but that is now on the verge of falling apart.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      in Elections

      China Girds for Economic Stress of Trump’s Tariffs

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      The economy grew steadily from January through March, but U.S. tariffs pose a risk for China in the coming weeks and months.President Trump’s tariffs have been good for China’s economic growth. At least they were over the first three months of the year, as the country’s factories raced to ship exports ahead of the trade restrictions.China’s National Bureau of Statistics reported on Wednesday that the country’s gross domestic product grew 1.2 percent from the last three months of 2024. If that pace continues, the Chinese economy will expand at an annual rate of 4.9 percent.But whether China can maintain that growth is shrouded in uncertainty.Pinned down by tariffs that threaten to freeze trade with its biggest customer, China’s economy is facing one of its greatest challenges in years.Growth in the early months of this year was propelled by rapidly rising exports and the manufacturing investment and production necessary to support those exports. Sales of electric cars, household appliances, consumer electronics and furniture were also strong because of ever-widening government subsidies for buyers.Then on April 2, Mr. Trump started escalating tariffs, which reached an extraordinary 145 percent for more than half of China’s exports to the United States.Mr. Trump’s first two rounds of tariffs on Chinese goods, 10 percent in February and again in March, had little immediate effect on exports. China’s overall exports in March rose 12.4 percent in dollar terms from a year earlier, as some exporters appeared to rush shipments to docks before tariffs could go even higher.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      in Elections

      Hong Kong Suspends Packages to the U.S., Wading Into the Trump Trade War

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      The move comes before President Trump’s planned imposition of new tariffs on small packages sent to the United States from Hong Kong and China.Wading into the trade war, Hong Kong said on Wednesday that its postal service will no longer send packages to the United States.It is the city’s first move in a spiraling tit-for-tat trade war between China and the United States that is reordering global shipping routes.President Trump this month ordered the closure of a loophole that allowed retailers to send clothes and goods from China and Hong Kong, a special administrative region, to the United States without having to pay tariffs. After that change takes effect on May 2, United States Customs and Border agents will begin to collect previously exempted tariffs on shipments worth less $800.Hongkong Post said it would immediately stop accepting surface postal items containing goods to the United States. It said it was taking the action in response to President Trump’s tariffs.“The U.S. is unreasonable, bullying and imposing tariffs abusively,” the postal service said in a statement posted to the Hong Kong government’s website.The postal service said it would contact senders who posted packages with goods that have not yet been shipped, to return the packages and refund their postage.“The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts,” it said. More

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      in Elections

      Trump’s Tariff Threat for Drug imports Poses Big Political Risks

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      Levies on Americans’ daily prescriptions and other medicines could raise costs, spur rationing and lead to shortages of critical drugs.President Trump’s decision to move a step closer to imposing tariffs on imported medicines poses considerable political risk, because Americans could face higher prices and more shortages of critical drugs.The Trump administration filed a federal notice on Monday saying that it had begun an investigation into whether imports of medicines and pharmaceutical ingredients threaten America’s national security, an effort to lay the groundwork for possible tariffs on foreign-made drugs.Mr. Trump has repeatedly said he planned to impose such levies, to shift overseas production of medicines back to the United States. Experts said that tariffs were unlikely to achieve that goal: Moving manufacturing would be hugely expensive and would take years.It was not clear how long the investigation would last or when the planned tariffs might go into effect. Mr. Trump started the inquiry under a legal authority known as Section 232 that he has used for other industries like cars and lumber.Mr. Trump said in remarks to reporters on Monday that pharmaceutical tariffs would come in the “not too distant future.”“We don’t make our own drugs anymore,” Mr. Trump said. “The drug companies are in Ireland, and they’re in lots of other places, China.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More