Ed Hom expressed concerns about the impact of the tariffs on Chinese imports on his business, stating that he is storing extra inventory uncertain about the duration of the tariffs.
Many business owners in Cleveland’s AsiaTown are anticipating significant financial implications following President Donald Trump’s decision to impose a nearly 145% tariff increase on products imported from China. This move has resulted in heightened uncertainty among members of the community.
Although tariff escalations were temporarily halted for over 75 nations, China remained excluded from this list. Consequently, entrepreneurs such as Ed Hom, the proprietor of Asia Plaza’s retail establishment, are now devising strategies to ensure the survival of their enterprises.
“We are stocking away as much as possible, because we don’t know how long these tariffs will last,” Hom told 3News.
Asia Plaza has been in Hom’s family for 35 years and specializes in retailing Asian goods, most of which are shipped directly from China. But with new tariffs in place, Hom says prices are already on the rise.
“I’ve asked them (our suppliers), ‘What should we stock up on now as quickly as possible? What can we defer as much as possible?'” he explained. “And of course, they say, ‘No matter what, a lot of it is going up.'”
Economists say the increased tariffs won’t just affect imported items. Mark Schweitzer, a research associate professor of economics at Case Western Reserve University, claimed the effects will ripple through to domestic products as well.
“It’s not just about the Chinese product that I buy; it’s also about the bolts that are going into the lawn mower that I happen to buy,” Schweitzer said. “It’s made in the U.S., but it’s got parts that were made in China.”
Despite the pushback, Trump defended his policies during a cabinet meeting Thursday, calling them a long-overdue move.
“There’ll be a transition cost and transition problems,” the president said, but in the end, it’s going to be a beautiful thing.”
Still, business owners like Hom aren’t optimistic.
“(I’d love to see) a settlement as quickly as possible,” he said. “But again, I don’t see that with Trump. I don’t see that with a Republican legislature that is totally bent on listening to Trump, because, again, every Republican politician is scared that Trump will go after them.”
