Chicago area small businesses gathered last week in Uptown for an expo organized by nonprofit Chinese Mutual Aid Association.
Conversations with some of the two dozen companies there give a snapshot of how commerce has been affected by President Donald Trump’s tariffs.
“A lot of small businesses are struggling with uncertainty, with how they should price and plan,” said Chettha Saetia, economic development director at the Chinese Mutual Aid Association in Uptown. “It is very, very hard to do business.”
Saetia has advised some business owners to diversify their sourcing from countries beyond China, such as Vietnam and Thailand. Yet sourcing from China can’t be easily or quickly replaced. “There are certain things China does so well and for so long,” Saetia said.
In April, Trump paused “reciprocal” tariffs on about 60 countries until the end of July, but a blanket 10% tariff is in place for most of them. It remains to be seen what will happen after the temporary reprieve ends, but other countries such as Vietnam and Thailand are not the target of Trump’s trade war, unlike China, Saetia said.
Some companies simply can’t move sourcing from China. At the expo, Donna Bridgeforth, owner of Bridgeforth Wolf and Associates, displayed branded water bottles, bags and clothing often given away by companies at events. Bridgeforth Wolf has been sourcing corporate gifts from China for 37 years; 90% of its products are from there.
The Near North Side company has long-standing relationships with brokers in China who have connections with factories there. “We can’t change sourcing overnight,” said Bridgeforth, who is not considering shifting from China.
And in Trump’s trade war, policies can change any time. On Wednesday, a federal trade court in New York blocked some of his tariffs on imports under an emergency powers law. “Partners negotiating hard during the 90-day tariff pause period may be tempted to hold off making further concessions to the U.S. until there is more legal clarity,” said Wendy Cutler, a former U.S. trade official who is now vice president at the Asia Society Policy Institute.
At the expo, other business owners gave a glimpse of how tariffs have affected them.
2d Restaurant
“Tariffs have affected us greatly. It’s a roller coaster,” said Kevin Yu, owner of 2d Restaurant with his wife, interior designer Vanessa Vu.
The cafes in Lake View and West Loop promote Asian culture and food through Vietnamese coffee, mochi donuts and Taiwanese fried chicken. Opened in 2022, 2d is known for its striking decor that brings a black-and-white comic book to life. Its interior is hand-painted so it resembles a Parisian cafe.
Many of 2d’s supplies and materials come from Asia so costs have spiked recently. In December, a case of coffee from Vietnam cost $76 but hit $110 this month. The restaurant can’t pass on such a large price hike onto customers. “No one will pay $9 for a cup of coffee,” said Yu. However, he noted that 2d will likely raise menu prices in coming months.
Although 46% tariffs on goods from Vietnam were paused, Yu won’t stockpile coffee due to lack of storage space.
In February, 2d ordered vinyl flooring sheets from China printed with designs by Vu. The shipment was on its way when Trump suddenly ordered 145% tariffs on goods from China in April. Flooring costs unexpectedly jumped by about $4,500. When the shipment arrived in California, Yu’s supplier wouldn’t release it until he agreed to pay the increased fees. But on May 12, the U.S. and China announced a 90-day truce that lowered tariffs on China to 30%,
“We were lucky that the tariff decreased last minute, and we were able to negotiate with the supplier by offering them two other projects to avoid delaying our project timeline,” said Yu. “The shipment has since arrived and has been installed, but the tariff impact definitely put a strain on our budget.”
McKlein Co.
Parinda Saetia owns leather goods wholesaler McKlein Co. based in Broadview, west of Chicago. McKlein makes leather briefcases, handbags and luggage in Thailand. Its shipments from there were delayed.
In April, McKlein’s shipping company paused sending a container when Trump announced 36% tariffs on goods from Thailand. But now during the 90-day reprieve, it’s rushing to ship McKlein’s products within weeks. Even without the turmoil of tariffs, business has been slow at McKlein as consumers hold back on spending. “Inflation is not going down,” said Saetia. “Tariffs have made things worse.”
Indus Farms Superfoods
Indus Farms Superfoods, based in Pilsen, sells freeze dried fruit from India, including mango, pineapple and guava. Clients such as restaurants and bakeries use its dried fruit and powders in beverages, baked goods and other products.
The company does not source from China so Indus Farms has gotten more inquiries from potential buyers considering alternative sourcing, said owner Parul Purohit. In April, Trump ordered tariffs of 26% on goods from India but paused them for 90 days.
However, shipments from India were still delayed because tariffs threw global logistics into disarray. Recently, Indus Farms’ products did not arrive in time so the company couldn’t fulfill some Amazon orders. It lost thousands of dollars in sales, said Purohit.
Sushi Pink
Shifa Zhong, owner of Sushi Pink in the West Loop, imports fish, seaweed and other products from Japan.
Trump paused 24% tariffs on goods from Japan, yet Zhong has seen higher costs for all ingredients and supplies since he bought the restaurant in August 2024. Tariffs only added to the burden. In April, he raised menu prices by about 10%, though Zhong noted they were already below market rate when he took over Sushi Pink.
Airetage
Airetage in Highland Park sells T-shirts, hoodies and hats made of hemp fiber. Its apparel is made in China from hemp grown there. Owner Miles Lazar touted hemp as eco-friendly with softer fibers than bamboo.
Because of tariffs, the cost of an Airetage T-shirt has increased more than 20%. But Lazar hasn’t raised retail prices yet so a shirt still sells for $40. He is currently talking to different suppliers and considering sourcing hemp apparel from India.
Infinity Board
Infinity Board owner Oksana Siddikova started selling modular cutting boards this year. She sources bamboo sheets from China and her Los Angeles distributor said it will soon raise prices by about 20% because of tariffs.
Siddikova can’t bulk buy bamboo now during the reprieve because she doesn’t have storage space. She is looking into alternative sourcing before ordering more bamboo at the end of the summer. But one of her cutting board designs is made of U.S. compressed recycled paper so it hasn’t been affected by tariffs.
Aging In Place Monitoring
The North Aurora company makes monitoring devices and systems for seniors living at home, such as emergency push buttons and bed sensors. Aging in Place Monitoring hasn’t been affected by tariffs, said CEO Chad Lacek. It manufactures at its facility in North Aurora. It uses some printed circuit boards from China, but they are also available domestically.
Contributing: AP