Today, the United States’s ongoing trade war with China is still affecting what you can find on Chinese restaurant menus. This has led to sky-rocketing prices for U.S. agricultural exports, such as American beef and chicken feet, following recent tariffs imposed by former President Donald Trump. This dramatic increase in expenses is being felt by consumers and restaurant operators alike.
Since March, tariffs have raised prices for some products by as much as 30%. Geng Xiaoyun, owner of Kunyuan restaurant, who’s had to take American chicken feet off of his menu in recent months. These tariffs have made these delicacies prohibitively expensive, making Geng look for substitutes from Brazil or Russia. He lamented the situation, stating, “It’s a shame we’re in a trade war. The high price is just too much to bear.”
Now Liu Li, a major beef supplier, says the price of U.S. beef has increased by 50%. This spike is directly caused by the tariffs. This dramatic rise in cost has put immense pressure on restaurants to continue offering their fast casual menu staples. Most Chinese restaurants today prefer Australian beef. This meat will enter Australia with zero duty due to the China-Australia Free Trade Agreement. The Chinese government rescinds its right to place safeguard limits on Australian beef imports. This puts another layer of complication into the mix.
The trade war has increased beef prices by as much as 47 percent. It has severely restricted access for American chicken feet into China. Geng noted that he hopes for a reduction in the price of American chicken feet, stating, “The price of American chicken feet will come back down, as long as there are no big changes in the world’s political situation.”
In retaliation for escalating tariffs, Trump went further by doubling steel tariffs to 50%, and the European Union immediately started developing retaliatory measures. The U.S. and China are scheduled to meet again in the next few weeks to negotiate potential trade deals and tariff reductions. A White House Treasury official suggested that the White House is nearing finalization on a few of these trade agreements.
China’s Commerce Ministry has countered Trump’s accusations of Geneva trade deal violations by highlighting U.S. export controls on artificial intelligence chips. They claim that these controls, for various reasons, “severely undermine” the Geneva pact.
The trade war is still playing out, its impact can already be felt in Chinese restaurants around the country. As a result, many diners will soon notice their favorite dishes appearing without key components or noticeably changed, all thanks to these escalating trade disputes.