How Trump’s Tariffs Can Harm San Francisco
Given San Francisco’s longstanding Chinese heritage, China has been a significant source of tourism for the City by the Bay. According to the San Francisco Convention and Tourist Bureau, of the 2–3 million people who visit the city, at least 75% of them pay a visit to the local Chinatown district, the first of its kind in North America. And Donald Trump’s tariffs could hinder its economy.
Unfortunately, since Trump has reclaimed the Presidency, his regime has implemented harsh border security policies, at times apparently to punish anyone who would dare criticize him, and has reignited and escalated a trade war with China through imposing tariffs on Chinese imported goods. On 15 April 2025, the White House published a fact sheet declaring that China, as a result of retaliating against the United States with its own tariffs, faces a “245% tariff, including a 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5% and 100%.”
In the midst of this economic contretemps, the Chinese government has become one of the most recent countries to issue a travel advisory to its citizens recommending that they “fully assess the risks of traveling to the United States and be cautious,” citing “the deterioration of China-U.S. economic and trade relations and the domestic security situation in the United States.”
Other countries that have offered warnings about the risks of traveling to the U.S. include the United Kingdom, Australia, Germany, France, Belgium, the Netherlands, Denmark, Finland and even Canada.
Consequence and complications regarding Trump’s tariffs may well be felt locally.
Both the tariffs, which drive up costs for distributors, stores and consumers, and the advisory to Chinese travelers to reconsider visiting the United States may pose significant financial problems for San Francisco’s Chinatown district, which has navigated a period of slow economic recovery since the quarantine resulting from the coronavirus pandemic.
“[It’s] not easy,” remarks Sophia Zhang, owner of J&K International Trading Company on Grant Street. “It’s not easy to pay rent doing retail. During COVID-19, retail was very slow. [Sometimes] the only income [for the whole day] was one postcard. Business is still slow. Some days, I only make $10 in sales, [total].”
Newly-elected District 3 Supervisor Danny Sauter, who has jurisdiction over Chinatown, said to the San Francisco Examiner, “This comes at the worst possible time for a neighborhood that was just beginning to regain its international tourism. Plain and simple, Trump’s tariffs and policies are hurting small businesses and our economy.”
In fact, the newly-opened Spicy & Cloud Restaurant on Clay Street is among many businesses in Chinatown that have experienced financial difficulties as a result of Trump’s tariffs against China.
“[We] launched right when tariffs were increased,” says manager Jiaxin Han, “which has dealt a heavy blow to us. Many commonly used Chinese cooking ingredients—such as soy sauce, Sichuan peppercorns, doubanjiang, dried chili peppers, and black fungus—are partially dependent on imports from China. The tariffs have caused the prices of these items to rise.
“At the same time, our suppliers have become less stable. Some ingredients have seen price increases or have gone out of stock, which has disrupted our ability to prepare certain dishes. Some kitchen equipment that is commonly used in Chinese restaurants is also imported from China. When we first took over the restaurant, we had planned to renovate the kitchen and replace the cooking equipment, but the increased prices forced us to abandon those plans.”
Related: Tourists Are Cancelling Trips to the US – How This Could Affect the Economy
“Due to rising costs, we had no choice but to raise our prices, which in turn led to a decrease in customers,” Han continues. “With lower profits, small restaurants like ours are under significant pressure. I can’t predict what changes may happen in the future, but so far, we haven’t seen any benefits from the increased tariffs—only challenges.”
Selling our future for pennies on the dollar
On Thursday, 17 April 2025, the Associated Press reported that Trump indicated to reporters in the Oval Office that he was in no rush to reach any trade deals over tariffs, citing the notion that they will generate increased revenue for the United States.
“Tariffs are making us rich,” Trump claimed. “We were losing a lot of money under [President] Biden. And now that whole tide is turned.”
To be sure, it goes without saying that any money earned from Trump’s tariffs will ultimately go to himself and his cronies and only a sucker would believe any different.
Despite expressing reluctance to suspend tariffs, shortly afterward, he boasted that he thought he could wrap up talks “over the next three or four weeks.”
“I don’t want them to go higher because at a certain point you make it where people don’t buy,” Trump said to the reporters. “So, I may not want to go higher or I may not want to even go up to that level. I may want to go to less because you know you want people to buy and, at a certain point, people aren’t gonna buy.”
Given the second Trump regime’s tendency to reverse course in terms of implementing policy, his words may ring true. Given his history of bluff, bluster and perfidy, his words may not. In the meantime, Mom-and-Pop shops in Chinatown will continue to be hemmed in and pinched by financial difficulties. Considering that Chinatown is a significant financial engine for San Francisco as a whole on account of revenues from tourism, restaurants and gift shops, a decline of that particular neighborhood through increasing costs on account of tariffs on imports could spill over into adjacent vicinities and result in a steady citywide economic downturn.
By James Conrad
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