SACRAMENTO, the United States, May 1 (Xinhua) -- Sweeping tariffs on imports have disrupted global trade and are expected to negatively impact small businesses in the United States, Chinese American community leaders warned.
"Historically, tariffs were the main source of financial revenue for the United States before being largely replaced by the income tax system. At this current stage, however, tariffs have become a self-defeating measure," said Hua Wang, chair of national board of directors of United Chinese Americans (UCA).
"Even though the current administration is attempting to use tariffs as a negotiation tool, they are already creating chaos in global trade," Wang told Xinhua at an event hosted by his organization Sunday night in San Carlos, California.
The event brought together local elected officials, business leaders, and community activists to examine the impact of tariffs and other policies on the Asian American community.
Wang said the tariffs have essentially disrupted the entire trading system, resulting in higher costs for consumers. Trade between the United States and China, he added, has virtually come to a halt.
"I see no positive outcomes emerging from this situation. My hope is that our judicial institutions, including the Supreme Court, will provide some check on the concerning trade policies being implemented by the current administration," he said.
Gene Chang, chair of UCA Board Fundraising Committee, echoed these concerns.
"First, we can expect inflation to affect our daily lives. Second, we'll likely experience shortages," Chang observed.
While the stated goal of bringing manufacturing back to America may sound appealing, Chang noted that such a transition takes significant time and must be aligned with available resources. If production costs become too high, Chang warned, the policy risks undermining the economy rather than strengthening it.
"These tariffs will inevitably affect our businesses in today's global economy. Our supply chain operates as a worldwide system. Many American industries and companies rely on China for parts, raw materials, and even technological components," Chang explained.
"By disrupting this supply chain, we jeopardize both our businesses and our competitive position in the global marketplace," Chang added.
Asian American entrepreneurs are expected to be hit particularly hard by the tariffs given their prominent presence in the U.S. retail businesses.
Small retailers and wholesalers supplying Asian grocery stores, electronics shops, and clothing boutiques across the United States depend heavily on imports from Asian economies targeted by these tariffs. ■