As a child growing up northeast of Beijing, Lisa Li’s idea of wellness wasn’t wrapped in buzzwords or wellness apps—it was the simple act of sipping tea with her grandmother. Burnt out from more than a decade in the high-pressure fashion industry, she longed to return to that simplicity. A 2018 trip to Shangri-La, China rekindled that feeling—especially after tasting a rose tea so transportive it felt like stepping into a floral garden. That moment sparked a journey across Asia, with Li sampling more than 100 teas and ultimately founding The Qi, a brand selling whole-flower teas from family farms in China.

Today, those same blooms that once brought her peace are caught in the crosshairs of geopolitics. On Feb. 1, President Donald Trump’s administration imposed sweeping tariffs—taxes on imported goods—on trade partners Canada, Mexico, and China. On April 2, Trump announced new tariffs aimed at reducing trade deficits and bolstering domestic manufacturing. These measures include a universal 10 percent tariff on all imports, which went into effect Saturday, with additional “reciprocal tariffs” targeting specific countries perceived as engaging in unfair trade practices.

For instance, China faces a 34 percent tariff, which—combined with pre-existing duties—results in an effective rate of 54 percent on Chinese imports. The European Union is subject to a 20 percent tariff, while Japan faces a 24 percent tariff, both of which went into effect Wednesday. These tariffs are purportedly calculated to mirror the barriers these nations impose on American goods, with the administration asserting that the rates aim to offset existing bilateral trade deficits. While the administration framed the move as a crackdown on illegal immigration and drugs, its ripple effects are hitting the consumer market hard.

For Asian American entrepreneurs—many of whom straddle the U.S.-Asia markets and rely on imported goods rooted in cultural heritage—this economic maneuver feels personal. “I’ve made the decision to absorb all added costs ourselves and not pass them on to our customers,” Li says. “It wasn’t easy. But maintaining the integrity and quality of our teas—and ensuring they remain accessible—is non-negotiable.”

Asian American-owned businesses like The Qi are forced to either raise their prices or take on the rising costs.

Courtesy of The Qi

Li is one of many small business owners feeling the weight of the new tariffs. From Chinatown grocers to herbal wellness brands alike, these imported goods carry cultural significance—not just commercial value. These days, preserving cultural heritage comes at a higher cost.

A new cost to culture

“Tariffs will hit small businesses the hardest, especially those with tight margins,” says Lizzi C. Lee, a fellow at the Asia Society Policy Institute’s Center for China Analysis. “Larger companies can pivot suppliers or negotiate better terms, but small businesses, particularly those run by AA+PI entrepreneurs, don’t have that same flexibility.”

Lee thinks businesses that import niche or culturally specific goods—such as traditional foods, textiles, or festival items—are especially vulnerable under the new tariffs, since these products often can’t be sourced within the United States. She notes that small business owners, particularly in Chinatowns and other immigrant neighborhoods, face a difficult tradeoff: either raise prices and risk losing loyal customers, or absorb the extra costs and further narrow already slim profit margins. In cities like San Francisco, New York, and Los Angeles, she says, neither option is truly sustainable.

For Elix, a holistic wellness brand rooted in 5,000 years of traditional Chinese medicine (TCM), founder Lulu Ge says the brunt of the tariff impact hasn’t hit the herbs themselves—yet—but the sustainable packaging they use, much of which is made in China. “China’s ability to manufacture sustainable packaging at scale has been key for small, mission-driven brands like ours,” Ge says. “Recently, one of our suppliers shared that the threat of tariffs is leading to ‘panic buying’ by large corporations stockpiling these materials. That’s driving up prices and tightening inventory, making it even harder for small businesses to compete.”