[By Guancha Observer Network, Ruan Jiaqi]

The tariff chaos brought by U.S. President Trump will lead to an unexpected "gain" - Americans will not be able to enjoy authentic Chinese cuisine in Chinese restaurants.

According to a report by The Washington Post on the 17th, Trump's tariff policies are putting American Chinese restaurant owners in a dilemma: their signature dishes heavily rely on specialty ingredients that can only be imported from China. Faced with exorbitant tariffs, Chinese restaurants have only a few options left: streamline menus, raise prices, or replace ingredients, all in order to continue surviving within increasingly slim profit margins.

The report points out that the food service industry is one of the industries with the lowest profit margins, usually only 3% to 5%. As tariffs erode profit margins, these already thin profit margins are likely to shrink even further. In particular, those Chinese take-out stores that operate only one location and do not offer alcohol (as alcohol is typically the highest profit item on the menu) will be especially vulnerable in this impact.

Tariffs also affect more than just food costs. For non-food items like takeout bags, meal boxes, seasoning packets, and nitrile gloves that are primarily imported from China, they are also not spared from the impact.

Adding insult to injury, according to Hsiao-Ching Chou, a Chinese-American author of Chinese recipes, Chinese restaurants face a special pressure: they need to balance meeting customers' expectations for authentic Chinese flavors with keeping prices affordable.

Hsiao-Ching Chou (lower right) celebrating the Lunar New Year with her family in Seattle. U.S. Embassy in China.

According to data from the National Restaurant Association (NRA), 70% of counties in the United States have Asian restaurants, which are mostly Chinese restaurants, followed by Japanese and Thai restaurants.

"No matter where you go in America, even in the smallest towns, you can find a Chinese restaurant," said Chou. "Chinese food has deeply integrated into American life in various ways and levels, becoming an indispensable part."

Industry analysts point out that this change stems from multiple factors: the influence of immigration waves, ongoing demographic shifts, and Americans' widespread exposure to multiculturalism and cuisine through cooking shows and social media, among other things.

Chad Moutray, chief economist and senior vice president of knowledge and research at NRA, said that in recent years, Americans' tastes have become significantly more international. "Consumers love trying new things, and spicy food and Southeast Asian cuisine are popular choices among these trends."

U.S. media reports indicate that this pursuit of international flavors has brought locally-flavored condiments like Chinese chili sauce, which are difficult to replicate and substitute, into the mainstream market. However, the growing demand has now collided with global trade wars.

Jing Gao, founder of the Chinese chili sauce brand "Fly By Jing" launched in the U.S., mentioned in an email sent to The Washington Post that the raw materials used in her products, including fermented black beans, Gong pepper, Erjing pepper, and cold-pressed mature rapeseed oil, can only be produced in Sichuan, China. These unique ingredients are key to her product standing out in the market.

Gao criticized that tariffs not only threaten the development of her brand but also "deprive Americans of an easy way to access and appreciate different cultures when they need it most."

Shunhe Yan, who runs a Sichuan cuisine restaurant in Fairfax, Virginia, is accustomed to stockpiling ingredients for making Sichuan hotpot base and fermented bean paste. Due to the large quantities used, he imports these ingredients via container shipping.

Mr. Yan said that his current inventory can last six to seven months, so he hasn't yet felt the pressure from tariffs. However, his suppliers have warned him that prices will "significantly" increase next time he places an order. "In the long run, tariffs will compress profits," he added.

He also heard complaints from some fellow Chinese restaurant owners who are struggling with budget impacts due to tariffs. Some are considering cutting menu items and staff. Mr. Yan said he isn't planning to do that yet. He wants to keep his menu unchanged while ensuring ingredient quality and portion sizes, so he can maintain a competitive edge when other restaurants raise prices.

Menu displayed on Mr. Yan's Sichuan cuisine restaurant website.

U.S. media reports suggest that, in the eyes of some seasoned figures in the food service industry, restaurant owners are currently in a tough spot, squeezed between rising supply costs and customer expectations for menu quality.

Given that menu prices are already 30% higher than before the pandemic, American consumers, increasingly concerned about inflation and economic recession, are unlikely to accept higher dining costs. Price increases will inevitably affect foot traffic.

A partner of a Chinese restaurant in San Francisco told the San Francisco Chronicle, "Although price increases haven't fully manifested yet, they may have already noticed. Perhaps 'scared' would be a more fitting description."

Tim Ma, owner of "Lucky Danger" and "Laoban Dumplings" in Washington, expects that some restaurants may address price pressures by reducing menu items and simplifying inventory ingredients. However, in the long term, they will ultimately face two outcomes: either raise menu prices or lower menu quality.

"We will have to reduce the amount of high-quality ingredients, but customers can definitely tell the difference," Mr. Ma said. With the continued presence of tariff pressures, Chinese restaurants may need to switch to cheaper ingredients. He once changed the soy sauce brand, but "everyone could immediately notice the difference."

Mr. Ma also mentioned that certain ethnic-specific cuisines, such as Chinese, Mexican, and Thai food, carry a stereotype: they are often perceived as "cheap, greasy, and filling."

"We are now more deeply affected by this stereotype because people think our food should be cheap, but I use the same ingredients and the same skilled labor (and costs have increased significantly)," he said.

Brandon Jew, who operates a Michelin-starred Chinese restaurant in Chinatown, is worried about another issue: the impact on how Chinese cuisine is perceived in the U.S.

"The last time Trump was president, we were doing business, so my biggest concern is ('American politicians again start to hype') 'China is bad' rhetoric and its impact on Chinatown and Chinese cuisine," he added. "I already feel that I am often fighting against the value proposition of Chinese cuisine."

This article is an exclusive contribution by Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7494130925836452392/

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