The Impact of Tariffs on Houston’s Food Scene
The city of Houston is known for its diverse and vibrant food scene, with a wide range of cuisines and restaurants to choose from. However, the recent tariffs imposed by President Donald Trump are taking a toll on the city’s food industry, driving up prices on imported goods and affecting local businesses.
The Tariff Effect
In April, Trump imposed tariffs of 10-41 percent on goods from dozens of countries, including China, Mexico, and the EU. The tariffs have triggered months of negotiations, retaliatory tariffs from allies, and shifting rates. As a result, the prices of imported goods, including seafood, takeout containers, and other ingredients, have increased significantly.
The Struggle is Real for Local Businesses
For local restaurants and food purveyors, the tariffs have meant higher operating costs and a struggle to adapt. At Tapioca House, a popular bubble tea and Taiwanese snack cafe, owner Tommy Ho is feeling the pinch. The prices of bento boxes have jumped by 50 percent, and Ho says suppliers expect to raise the price even more if trade wars continue. Even machinery costs have surged, with a new tea brewing machine imported from Taiwan costing $5,000, up from the usual $3,600 to $4,000.
The Sushi Industry is Also Affected
Across town at Blodgett Food Hall, Sunny Bertsch runs Kaisen Sushi HTX, a ghost kitchen and sushi stall that imports fish from global purveyors, including Scotland and Japan. The tariffs are upending this model, with Bertsch saying that the restaurant initially absorbed the 8 percent tariff on Japanese fish while the US and Japan negotiated rates. However, after months of economic uncertainty, Bertsch has raised prices by 15 percent to match Japanese rates.
Catering to the Problem
For Houston caterer Tokyo Gardens Catering, fresh fish imports are also non-negotiable. The small business provides sushi to H-E-B’s signature Sushiya offerings and is feeling the impact of the tariffs. According to co-president Robert Gondo, prices for imported goods, including wasabi, pickled ginger, and nori, have risen by 15 and 20 percent since April. Gondo and his team are scrambling for solutions, including buying pre-tariff items in bulk and securing longer-term contracts with suppliers.
Getting Creative and Strategic
Many Houston restaurants and food purveyors are trying to get creative and strategic in the face of the tariffs. At Tapioca House, Ho has frozen batches of fresh fruit for smoothies to stretch their shelf life and bought pallets of takeout boxes ahead of the tariffs, stocking up for six months. Bertsch has saved money by switching to a new packaging supplier for boxes and to-go bags, ordering custom-made containers directly from manufacturers on Alibaba.
Conclusion
The tariffs imposed by President Donald Trump are having a significant impact on Houston’s food scene, driving up prices on imported goods and affecting local businesses. While some businesses are trying to get creative and strategic, others are struggling to adapt. As the uncertainty surrounding the tariffs continues, one thing is clear: the last thing businesses want to do is pass the costs on to their customers. However, with the tariffs showing no signs of easing, it may become inevitable. Only time will tell how the Houston food scene will weather this storm, but for now, businesses are bracing themselves for the impact and hoping for relief.
