In Houston, the rising costs of seafood, takeout boxes, and various kitchen staples are sending shockwaves through the local food industry. The culprit at play is a series of tariffs imposed under President Donald Trump, which have significantly increased prices on imported goods from around the world. From Scottish salmon to fresh mangoes and avocados from Mexico, Houston’s culinary landscape heavily relies on imports.
As of April, President Trump implemented tariffs ranging from 10 to 41 percent on goods from various countries. His intention is to negotiate better trade agreements that favor American industries. This sweeping measure has had a dramatic impact, leading to months of negotiations and retaliatory tariffs, particularly noticeable in Houston. The costs of perishable goods and manufactured items are spiking, creating operational challenges for restaurateurs and grocers.
Tommy Ho, owner of Tapioca House, a café in Diho Square known for affordable bubble tea and Taiwanese snacks, illustrates the dilemma clearly. He sources many ingredients, including avocados and bento boxes, from countries like China and Mexico. The price of bento boxes has soared by 50 percent, with expectations of further increases if the trade conflicts continue. Even machinery expenses have risen; Ho’s new tea brewing machine from Taiwan cost $5,000, a jump from the usual price range of $3,600 to $4,000.
Despite revenue loss compared to last year, Ho has resisted raising prices at Tapioca House for the past two years. “We don’t want to increase too much because we still want to be affordable,” he remarks, acknowledging that the looming import duties may force price hikes in the future.
Meanwhile, at Blodgett Food Hall, Sunny Bertsch operates Kaisen Sushi HTX, a ghost kitchen offering generous portions of seafood at reasonable prices. Kaisen typically imports fish from various international sources, like Scotland and Japan. However, these tariffs have disrupted his pricing model. Initially absorbing an 8 percent tariff on Japanese fish, Kaisen recently faced a new 15 percent tariff that further complicates their operations.
Bertsch’s business model put him in a precarious position when he first encountered the rising costs. Reflecting on the experience, he says, “I didn’t make enough money, but I ran out of fish. That’s not supposed to happen.”
Since opening in July, Bertsch has raised prices by 15 percent to keep pace with Japanese tariff rates. He has taken to social media, posting updates on pricing changes due to financial pressures stemming from tariffs.
Tokyo Gardens Catering, a Houston-based caterer responsible for H-E-B’s signature Sushiya offerings, faces similar hurdles. Co-president Robert Gondo explains that every imported item is affected by rising costs, and even domestically sourced products see indirect price increases. The company sources ingredients like sushi rice from California while sushi essentials like wasabi and nori come from Japan, Vietnam, and South Korea. Since the imposition of tariffs, prices on these goods have climbed by 15 to 20 percent.
Gondo and his team have been proactive in seeking solutions to mitigate costs. They have been bulk purchasing pre-tariff items and negotiating longer-term contracts with suppliers. Although temporary reprieves on some tariffs have provided some relief, Gondo remains cautious about the long-term implications, knowing that they must continually innovate to soften the financial blow on their operations.
Innovative strategies are emerging among Houston’s culinary professionals as they adapt to the evolving landscape. At Tapioca House, Ho has begun freezing fresh fruit for smoothies to extend its shelf life, while bulk buying takeout boxes in anticipation of future price hikes. Bertsch has also shifted his packaging strategy, ordering custom containers directly from manufacturers on Alibaba, aiming for slower and more economical procurement.
These strategies reflect the resilience and creativity of Houston’s food industry, which is in a constant state of adaptation amid tariff-induced uncertainty. Bertsch, Gondo, and Ho closely monitor tariff news and maintain open channels with suppliers, all hopeful for a modicum of relief.
Gondo encapsulates the sentiment of many restaurateurs, stating, “The last thing we want to do—and I hope that we never have to do this—is to have it affect our customers. So, we’re absorbing a lot of that. We’re feeling that impact.”
The storm brought on by tariffs has implications far beyond the individual businesses; it reshapes the dining landscape in Houston, where price increases are quickly becoming a reality for everyone involved. As local businesses grapple with rising costs and seek solutions, the future of affordable dining in the city hangs in the balance.
image source from:houstoniamag