Trump’s tariffs drive up prices at Middle Eastern grocery stores in US

New levies begin on August 1 but importers have already raised prices

In a quiet plaza in northern Virginia, a small grocery store has been offering a taste of home to the US Capital Region’s growing Middle Eastern community.

For 15 years, Babylon Market's shelves have been filled with familiar staples – Iraqi pickles, Turkish coffee and dates from Saudi Arabia – connecting immigrants with the flavours and traditions of their homelands.

But now, the store is feeling the strain of global trade tensions.

Following President Donald Trump’s announcement of sweeping tariffs, including a 30 per cent duty on goods from Iraq, the market is feeling the economic ripple effects. Suppliers have begun raising prices in anticipation, and store owner Sagvan Said is hearing his customers complain about costs.

Sagvan Said, owner of Babylon Market, says his suppliers are pushing up prices and customers are complaining. Nilanjana Gupta / The National

“Everything is going up,” he said. “For example, if we used to get inventory for $1,000, now it’s $1,500 or $1,600.”

Mr Said, 60, is often behind the counter serving customers, operating the cash register or restocking the shelves.

His journey to Virginia started in far more uncertain conditions. In 1991, as the Gulf War ended and Saddam Hussein’s regime launched a brutal campaign against Kurds, Mr Said fled Iraq at the age of 26.

Like thousands of others, he crossed into the mountains and made it to Turkey, where he lived as a refugee for two years. Eventually, he was granted asylum in Canada and in 2001, he moved to the US in search of opportunity.

In 2010, that dream took shape with the opening of Babylon Market in Falls Church. Sourcing goods from Iraq, Lebanon, Saudi Arabia, the UAE and other countries across the region, Mr Said built more than a business – he created a cultural anchor for the community.

Products such as Iraqi pickles, Turkish coffees and dates from Saudi Arabia connect communities with the flavours of their homelands. Nilanjana Gupta / The National

Now, that dream is under threat. Although the new tariffs officially take effect on August 1, wholesalers have already begun adjusting their prices. Mr Said’s suppliers, mostly based in Michigan, are passing on the added costs, and he has no choice but to do the same.

“When we get 10 per cent added to the item, I have to add another 35 to 40 per cent for my profit,” he explained. “So, an item that used to cost $1 is now $1.60. It's really hard for us and for the customer, but we have no choice.”

He pulled a box of Saudi dates from the fridge. “We used to sell this box for $9.99. Now it’s $14.99.”

Other staples have also surged in price. A packet of crushed wheat for making Iraqi kubba – rice and potato balls filled with mincemeat – has jumped from $4.49 to $6.99. Turkish Mehmet Efendi coffee that once sold for $11 a can is now priced at $18.99. A case of Barbican, a popular malt drink imported from the UAE, now costs him $32, up from $21.

Turkey, Lebanon, the UAE and Saudi Arabia are all subject to Mr Trump’s universal 10 per cent tariffs.

“The tariffs haven’t even taken effect yet,” Mr Said said. “I worry what it’s going to be like after August 1.”

The store he built from the ground up alongside his wife and four children is now a daily struggle to sustain.

“Before, the business supported us. Now we are paying to keep the business going,” he added.

Mr Said is worried about what will happen to prices after trade tariffs come into effect on August 1. Nilanjana Gupta / The National

June inflation rises

Mr Said is not the only one feeling the pressure. Consumer prices in the US rose 2.7 per cent in June compared to a year earlier, according to the Bureau of Labour Statistics. Grocery prices climbed 0.3 per cent in just a month.

At Halalco Halal Meat Groceries, another Middle Eastern grocery store in Falls Church, the outlook is similar.

“Any grocery that you find usually in a Middle Eastern household, everything is covered and imported to our store,” said Awais Mohammed, Halalco’s purchasing manager.

“We have seen [prices of] sunflower seeds going up. We have seen maamoul going up. We are yet to see foul medames [fava beans], one of the important items, go up because it's a canned food.”

Mr Mohammed said the true impact will be felt in the coming weeks as new shipments arrive. Suppliers are warning stores to prepare for higher costs.

He worries about how this will affect customers’ budgets.

“Grocery is one of the biggest expenses for any household,” he said. “When prices go up 10 to 20 per cent, that’s money people won’t be spending elsewhere. Whether it’s going out to eat, shopping or anything else, people will have to adjust.”

Emre Alpsoy, business manager at Global Market Foods, which imports goods from the Middle East, Turkey and Europe, said the company has started increasing prices.

“We’re carrying almost 5,000 products,” he said. “It’s like the stock market. Prices go up and down. But we have to stay ready and keep the business running. In the end, it’s up to the customer to decide how they react.”

Economists warn the full impact of tariffs will be seen more in the months ahead.

For now, small business owners such as Mr Said are bracing for what comes next, hoping their customers will understand the changes and their communities will stand by them.