New U.S. tariffs, particularly on Chinese imports like soy sauce, are driving up costs at specialty stores, raising fears that smaller importers could face pressures challenging their ability to maintain safety standards.
Surprise policy shifts have added uncertainty to the trade landscape.
On April 9, 2025, the Trump Administration paused its steep “reciprocal” tariffs on countries like Vietnam, Thailand, and the Philippines for 90 days, leaving a baseline 10 percent tariff on most imports from these nations. However, tariffs on Chinese goods, including popular soy sauce brands, surged to 125 percent, intensifying cost pressures. The Administration says the tariffs address a trade deficit exceeding $1 trillion annually, but the pause signals potential negotiations, leaving the future unclear. With China’s retaliatory tariffs now at 84 percent on U.S. goods like soybeans, global supply chains for soy-based products face further strain.
The tariff hikes, especially on China, spark fears of price increases for culturally significant foods relied upon by immigrant communities and fans of ethnic cuisines. While the 90-day pause offers temporary relief for some imports, economists warn that costs for staples like rice, fish and sauces could still climb if tariffs resume or supply disruptions persist.
Rising costs, persistent risks
The Food and Drug Administration and the Government Accountability Office (GAO) have long noted gaps in import oversight, and tariff pressures could exacerbate risks for niche markets. With China facing a 125% tariff and others a 10% baseline, smaller importers may struggle to afford robust safety checks, particularly for fermented sauces like soy sauce and gochujang, which require strict handling to prevent contamination.
The FDA inspects only 1 to 2 percent of imported goods annually, according to a 2023 GAO report. A 2022 study in the Journal of Food Protection found that mishandled fermented imports can harbor Bacillus cereus, a bacterium causing food poisoning. While the tariff pause for some countries might ease the immediate strain, the high China tariffs and ongoing oversight gaps keep safety concerns alive.
Regulatory hurdles
Regulators face challenges in closing safety gaps. The FDA’s 2023 import inspection budget of $216 million hasn’t kept pace with rising trade volume, per the GAO, leaving smaller importers—who lack the safety programs of large corporations—vulnerable. No exemptions for culturally vital foods have been proposed, and the 90-day pause doesn’t address long-term funding needs for better oversight.
Consumers can reduce risks by checking labels for country-of-origin details and prioritizing certifications like USDA Organic or ISO 22000, though these aren’t foolproof.
Uncertain outlook
The tariffs’ path forward remains murky. The 125 percent tariff on China and its 84 percent retaliation signal a deepening trade war, with economists predicting higher prices for fermented sauces, spices and more. The 90-day pause for other Asian nations offers a reprieve, but without clarity on extensions or negotiations, small grocers and their customers face ongoing strain, balancing cultural diets with safety and affordability. As regulators and industry players watch for the Administration’s next move, the stakes remain high for keeping specialty foods accessible and safe.
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