Bay Area Companies Navigate Uncertainty Due to US Tariffs on China

Certain businesses within the San Francisco Bay Area are already experiencing the repercussions of the latest U.S. tariffs imposed on Chinese imports, while others remain uncertain about the future.

For establishments such as Gingko Furniture in downtown Mountain View, the impact of the tariffs has been swift. Jerry Xia, the owner who has been in charge since its inception 15 years ago, expressed to The Epoch Times that his business “will face significant challenges.”

With import duties surging from 20 to 145 percent, Xia is worried, especially since around 80 percent of his merchandise is sourced from China.

The tariffs will also affect Gingko’s patrons, as Xia anticipates that he will have to increase prices on his furniture soon. He intends to explain to concerned customers that these price hikes are a direct result of the tariffs, hoping for their understanding.

“We have to prepare ourselves—some customers may choose to leave,” he remarked.

Xia wishes for a smooth resolution regarding the tariffs with U.S. trade allies. He expressed worries about potential recession talks and mentioned he will monitor developments on a daily basis.

In early 2025, President Donald Trump imposed increased tariffs on Chinese imports, with the current tariff rate reaching 145 percent. The Trump administration claims these tariffs provide an opportunity to reshape global trade, encouraging manufacturing to return to the U.S. and addressing the nation’s trade deficit.

Michele Nash-Hoff, president of ElectroFab Sales, a California-based manufacturers’ representative firm, stated that businesses will have clarity on whether the tariffs are a long-term measure in the next three to six months.

“If the tariffs are sustained over the long term, they will significantly encourage the return of manufacturing to America,” she told The Epoch Times.

Nash-Hoff does not believe the tariffs will impact inflation as some have worried. She referred to the 2018 U.S. tariffs on steel, aluminum, and several imports from China, which only resulted in a modest 0.5 percent rise in the inflation rate.

She believes that the new tariffs will benefit the U.S. economy by generating more American jobs, leading to higher tax revenues, which would help reduce the annual trade deficit and the national debt.

The survey indicated that 78 percent of manufacturing CEOs have either reshored or are actively reshoring portions of their operations. Moreover, 88 percent of CEOs “believe that the health of American manufacturing relies on reshoring.”

Meanwhile, other local businesses have not yet seen direct consequences from the tariffs. Jose Olibo, owner of The Off Ramp bicycle shop in Santa Clara, mentioned to The Epoch Times that it’s premature to gauge the impact. Some manufacturers have indicated potential changes in import duties for various products, especially e-bikes, though he remains uncertain about the specifics.

Olibo’s primary supplier, Giant, one of the world’s largest bicycle manufacturers, operates out of Taiwan and has production facilities in China. Giant has informed Olibo that importing its products may become more expensive in the coming months, although specific details were not provided.

Nevertheless, Olibo is not contemplating a switch in manufacturers, citing Giant’s long-standing support. He is prepared to reduce his already limited inventory before considering a price increase.