SCRANTON — As uncertainty regarding tariffs continues to swirl, the owner of an Asian grocery store in the city expressed more concern about the possible lack of products from southeast Asia than rising prices.
Sumalee Schnessel, co-owner of Spice Asian Market on Adams Avenue, fears restaurants and larger retailers may try to purchase an excess of goods from China and other countries before any tariffs potentially become even steeper.
On Wednesday, President Donald Trump implemented sweeping tariffs on goods from dozens of countries, including several in Asia – South Korea (25%), Vietnam (47%) and Cambodia (49%) – according to an Associated Press report. The same day, Trump announced a 90-day pause of all tariffs, except those on products from China which were increased to 125%. Countries subject to the pause will be tariffed at 10%, per the AP.
On Thursday, White House officials clarified Chinese imports will be tariffed at 145%, once other previously announced tariffs were included, according to an AP report.
“During the pandemic, we couldn’t get a lot of products from overseas,” Schnessel said. “I believe there are going to be more people stocking up, and we’re in a small town. It will go to a big town first because we don’t have a lot of Asian communities in this area. Those big towns are going to be able to pick their products first and I worry it’s going to be sold out. The retail companies don’t have to limit how many players can pick from the products. … I think the restaurants are going to order a ton of stuff and we might not be able to get it because we’re a smaller shop and we have a shelf life for our products. The price is not an issue because people understand the price is up. We can raise the price a little bit – we prepare for that part.”
Schnessel added the store may incur price increases on items including rice and sauces, but noted some Asian companies have factories in the United States.
“We’re going to order from our wholesale distributor next week, so I’m going to know if there are price increases,” she said. “I think there is going to be an issue with sold-out products more than price increase.”
During a visit to The Port of Philadelphia Thursday, Pennsylvania Gov.Josh Shapiro stresse d tariffs are going to create high prices for consumers and businesses in the state.
“Tariffs are taxes – and they’re going to make everything from fresh fruit to chocolate to auto parts more expensive for Pennsylvanians,” Shapiro said.