Shops in Chinatown are beginning to feel the financial effects of tariffs and worry that raising prices could impact their livelihoods.
Edward Lau and his employees precisely weigh herbal products, taking wholesale volumes and packaging them into smaller quantities, including supplements.
"It helps when people have backaches," said Lau. "All of these products come from China. All of these will be affected by the tariffs."
Profit margins for a small store like Lau's Ellision Enterprises on Washington Street in Chinatown are slim.
They receive monthly shipments from China.
The 10% tariff initiated in February, which doubled to 20% this month, has Lau adjusting the price for imported goods.
"This ginseng product sells for $88 per pound. We will be selling it for at least $100 per pound," said Lau.
But competition is fierce among similar stores in Chinatown.
Lau can only absorb the hits for so long and has been hesitant to raise prices that will impact customers, many of whom are elderly.
"The customer base is mostly people living on fixed incomes. They'll be hit really hard," said Lau.
The Trump Administration initiated tariffs primarily to address concerns over trade practices.
The tariffs also aim to reduce the U.S. trade deficit with China and encourage domestic manufacturing by making Chinese imports more expensive.
Cris Deritis is deputy chief economist at Moody's Analytics.
"Usually what happens is the cost of the tariffs to households and businesses in terms of higher prices more than offsets any potential benefit. There are some cases where tariffs can be helpful if you're trying to protect a new industry or for national security reasons you want to make sure that a certain industry remains available and thriving," said Deritis.
It's a macroeconomic issue that's affecting Lau right now.
"Maybe in the long run it absorbs or solves part of the deficit problem. But in the short run it's going to be hurting people," said Lau.
Lau said his options are to raise prices, which could ultimately cause him to lose business.
"It's becoming more expensive so people will start thinking of alternatives or simply won't use it," Lau said. "The uncertainty makes it really hard to do business," said Lau.