When the U.S. government announced plans to impose additional tariffs on imported goods — especially from Asian countries, including Vietnam — many shop owners, importers, and consumers in the Vietnamese-American community began asking: How does this affect me? What should I do?
This article explains step by step: what tariffs are, why they matter to the Vietnamese-American community, and what you can do to prepare — whether you're a business owner or simply someone who shops weekly.
Don't wait until you receive a new tariff bill to take action — start monitoring early and calculate how the new tariff rates will affect your import costs.
What Are Tariffs — and Who Really Pays?
A tariff is a tax that the U.S. government collects from importers when foreign goods enter the United States. It may sound like "the other country bears the loss," but that's not actually how it works.
Imagine Tuấn in Garden Grove importing fish sauce and spices from Vietnam to sell at his grocery store. When the U.S. imposes a 20% tariff on food products imported from Vietnam, the manufacturer in Vietnam doesn't automatically "pay" that amount. Instead, Tuấn — the U.S. importer — is the one who must pay the tariff to U.S. Customs and Border Protection. From there, he has two choices: absorb the loss himself, or raise his selling prices. Most of the time, consumers will be the ones who feel it most clearly.
According to the Federal Reserve, major rounds of tariff increases typically lead to increased consumer prices within several months to a year after the policy takes effect.
Why Is the Vietnamese-American Community Affected More Than Others?
The Vietnamese-American community has a particularly close trade relationship with Vietnam — the country that is the second-largest exporter of textiles to the United States (according to the U.S. Department of Commerce in 2024), and is the main source of supply for many familiar products: processed foods, household goods, clothing, and materials for nail salons.
Beyond that, many Vietnamese-American businesses operate in sectors directly affected:
- Nail salons: accessories such as acrylic powder, gel, and artificial nails are mostly imported from Asia
- Grocery stores and restaurants: dependent on imported spices, sauces, and dried seafood
- Clothing and apparel importers: Vietnam holds a large market share in this industry
- People sending money home: exchange rates and rising living costs indirectly affect the purchasing power of families in Vietnam
What Do Small Business Owners Need to Know?
If you're importing goods from Vietnam or other Asian countries, the most important thing is to know the HS code (Harmonized System code — the international commodity classification code) for each item you import. Each product has a different tariff rate, and not everything is affected equally.
Lan, who owns a nail salon in Houston, shared that when the price of gel and acrylic powder increased due to tariffs in 2018 to 2019 (after the first round of tariffs under the Trump administration), her salon had to raise service prices by 2 to 3 dollars per set to cover costs. Some customers were initially unhappy, but most accepted it because prices at competing salons were similar.
The lesson learned: don't wait until you receive a new tariff bill to take action. Start monitoring early and calculate how much the new tariff rates will affect your import costs as a percentage.
Three Adaptation Strategies for Businesses
Strategy 1 — Diversify Your Supply Sources. If an item you're currently importing from Vietnam faces steep tariff increases, explore suppliers from other countries such as Thailand, India, or even within the United States. You won't always find a perfect substitute, but at least you'll have more options to negotiate pricing.
Strategy 2 — Implement Gradual Price Adjustments. Sudden price increases surprise customers and provoke negative reactions. Instead, raise prices gradually, clearly explain the reasons to loyal customers, and consider cutting costs elsewhere (such as adjusting portions, changing suppliers) before passing the entire cost increase to customers.
Strategy 3 — Research Tariff Exemptions. According to the Office of the U.S. Trade Representative (USTR), some businesses can file for an exclusion (tariff exemption) if they can prove that the product has no alternative domestic supply source in the United States. This process is not simple, but many small businesses have succeeded with help from trade lawyers or industry associations.
What Will Consumers Notice?
For average shoppers, the most obvious effect is that imported food prices will rise — especially Asian products like dried shrimp, shrimp paste, instant noodles, soy sauce, and canned tropical fruit.
Additionally, ready-made clothing from Vietnam — one of the major sources for U.S. retail chains — may also see price increases. According to the American Apparel and Footwear Association (AAFA), the average U.S. consumer could spend an additional 300 to 500 dollars per year if textile tariffs are applied comprehensively.
This doesn't mean you should panic and start hoarding goods. But this is a good time to:
- Compare prices between different supermarkets and Asian stores in your area
- Buy in bulk items that don't spoil easily and that you use regularly
- Consider brands manufactured in the United States or Mexico for certain spices and processed foods
Comparison of Impact Level by Industry
| Industry | Level of Impact | Main Reason |
|---|---|---|
| Nail salons | High | Accessories depend on Asian imports |
| Vietnamese restaurants | Medium to High | Spices, dried seafood, sauces imported |
| Asian grocery stores | High | Most goods are imported |
| Clothing retail | Medium | Depends on percentage of goods from Vietnam |
| Individual consumers | Low to Medium | Indirect impact through increased retail prices |
Where to Monitor Information?
Tariff policy changes quickly, sometimes within just a few weeks. To avoid being caught off guard, monitor:
- USTR.gov — where official tariff announcements are posted
- HTS.usitc.gov — look up tariff rates by HS code for specific products
- Local chambers of commerce — many cities like Houston, San Jose, and Westminster offer information sessions for small businesses
- Local Vietnamese-American Business Associations, which often have free or low-cost legal and consulting services
Key Points to Remember
Tariffs are nothing new, and the Vietnamese-American community has weathered similar periods of volatility before. What matters is understanding the mechanism correctly — so you don't panic, aren't caught off guard, and can make business and consumer decisions proactively.
If you're a business owner, start today by reviewing your import list and current tariff rates. If you're a consumer, keep an eye on prices and don't hesitate to ask shop owners why prices are changing — the answer will usually help you understand the bigger picture.