‘We’re doing our best’: Albuquerque shops brace as Trump’s trade wars hit Korean, Japanese imports

Daiso, a national retailer that sells Japanese merchandise, had to adjust its prices as a result of the ongoing trade wars between the U.S. and some of its trading partners.

The change hasn’t affected revenue, Albuquerque store manager Nick Hertzfield said, but it does have shoppers gripping their wallets a little tighter. Importers like Daiso are facing looming uncertainty as proposed tariff increases on major U.S. trading partners could take effect next month.

“It doesn’t help my business,” Hertzfield said. “Our revenue hasn’t decreased, but it has made it so people are less confident shopping with us, so we will sell fewer items because people are less confident buying items for a higher price.”

The consumer hesitance and price changes could continue, as President Donald Trump announced new tariff rates for several countries, signed, sealed and delivered through letters the U.S. president sent to foreign leaders and posted to Truth Social last week.

The letters set forth a rate of 25% for the U.S.’s sixth and seventh largest trading partners, Japan and South Korea, and rates ranging from 20% to 50% for other countries. The president also announced a new rate of 30% for the European Union and Mexico over the weekend. Foreign leaders have until Aug. 1 to reach a deal.

Trump has long lamented the trade imbalance that exists between the U.S. and its allies, through deals he says “screws” the U.S. In January, he began ripping up deals with some of America’s largest trading partners like Canada, Mexico, the European Union, Japan and South Korea on the bet that — given the U.S. drives more trade than any country in the world — U.S. allies will be eager to renegotiate promptly.

That process hasn’t been as quick as the president would like, so he’s upping the pressure with new tariffs. The United States wants to have relationships with countries, Trump said in a Cabinet meeting last Tuesday, “but in every case, they treated us far worse than I’m treating them.”

For businesses that sell international goods and have already seen the trade war take its toll, the proposed rates give rise to concern.

Daiso — which opened in Albuquerque in April and imports 95% of its products from Japan, according to Hertzfield — adjusted its pricing model in May “due to the rising cost of importing goods,” Hertzfield said. The change raised prices for products across the store by between 25 and 50 cents, he said.

Trump announced his so-called reciprocal tariffs — levied against countries that run trade surpluses with the U.S. — in April but said most countries would receive a baseline rate of 10% and a chance to negotiate deals before higher rates were imposed.

Daiso was able to maintain its prices for a few weeks with the stock it already had in the U.S. when the 10% April tariffs went into effect, as the Albuquerque store opened, Hertzfield said. If Trump’s new tariffs go into effect, the retailer will likely have a few months before it has to make more decisions on potential pricing changes.

The trade wars have impacted products the store is able to carry as well, Hertzfield said, adding that there are some items that the store no longer carries because the margins for profit have disappeared. Hertzfield said these are changes happening across all U.S. Daiso stores.

“We’re doing our best,” Hertzfield said. “We’re trying as hard as we can to keep the price low because that’s our entire business model.”

Japanese Prime Minister Shigeru Ishiba has responded to Japan’s tariff letter, stating he would continue negotiations, while calling the tariff “extremely regrettable,” according to reporting by the Associated Press. South Korea’s Trade Ministry also responded, stating the country would accelerate negotiations to reach a deal.

Trump shifted the deadline from last Wednesday to Aug. 1 through an executive action he signed on Monday. In the letters, Trump warned the countries that they would face even steeper rates if they responded with retaliatory tariffs. He also encouraged the countries to manufacture in the U.S. to avoid tariffs.

The president cited the rates as “far less” than what is needed to eliminate the trade deficit the U.S. runs with these countries and expressed the U.S.’s interest in moving trade relationships forward, “but only with more balanced, and fair, TRADE.”

Time will tell if negotiations yield deals by August, but Munji Kahalah, creative director of local exotic snack store Monaco Market, won’t be too surprised if he receives a letter of his own — from suppliers stating they’ve increased their prices.

Kahalah said he’s already received a similar letter in recent months, prompting the market to also raise its prices. But Kahalah said he doesn’t plan to raise them anymore.

“We’re already expensive as it is,” said Kahalah. “I don’t think we’re going to do anything more on our end. We’ll probably eat up the cost.”

The market, located at 4400 Wyoming NE, imports about 90% of its products from several countries, including roughly 50% from South Korea.

While the tariffs have made business “not as easy as it used to be,” Kahalah said he is committed to researching and finding creative ways to adjust and keep bringing unique snacks and trends to Albuquerque.

“We don’t always want to be last. So if that means spending a couple more extra dollars, that’s fine. I just don’t want Albuquerque to always be left behind,” Kahalah said.