Tariffs driving up costs at Modesto specialty grocery stores, owners say

From masalas to Indian cookware, Indian Grocery and Chaat has been a staple for South Asian families, those hoping to make Indian dishes at home, or anyone looking to grab a bite at its in-store restaurant. But since President Donald Trump announced tariffs on goods from dozens of countries, the store has gone from having about 400 customers a day to 200.

"The customers' incomes are not rising. But the price of everything else is increasing," said Lovepreet Singh, owner of the store on Sisk Road just north of Modesto's Vintage Faire Mall. "And because of tariffs, there are some items that we can't even import."

Specialty grocery stores have long served communities, offering hard-to-find items and in-demand imported goods. Yet these stores and loyal customers face special challenges as they adapt to Trump's tariffs.

Rice prices are posted on the wall at Asian Market in Modesto, Wednesday, July 2, 2025.

Most goods Singh imports for his store are from India, Pakistan, Fiji and Canada. On Feb. 1, Trump signed an executive order imposing a 25% tariff on goods from Mexico and Canada. Indian goods faced a 27% tariff on April 9.

One of the most popular items at Singh's store is atta, a type of whole-wheat flour used to make South Asian flatbreads like roti or chapatti. According to Singh, importing a bag of atta would cost between $12 and $14. Now, it has nearly doubled.

"Before the tariffs, people would often buy items in bulk or buy $100 worth of groceries," Singh said. "Customers know about the rising prices and are shopping less because of that."

Another specialty store experiencing the impacts of tariffs is Afghan International Market & Restaurant on McHenry Avenue at West Rumble Road. The store imports dry fruits and nuts from Afghanistan, Iran and Turkey, all of which face a 10% tariff.

Asian Market co-owner Nai Truong looks over the cold case in Modesto, Wednesday, July 2, 2025.

Pistachios from Iran and Turkey are one of the most popular items at the market, owner Mohamed Quadri said. The price has risen from $8 to $12 per pound. Another staple item, Afghan mulberry has doubled in price.

"The Persian and Afghan community really depends on us," Quadri said. "Some people have asked about the rising prices, but also everyone is seeing the impact of inflation and knows what is happening."

Some stores, like Asian Market at 2425 McHenry, have seen price increases only on select goods. The store carries an array of goods from Vietnam, Japan, Thailand, Korea, India, China and the Philippines. Store owner Trong Vuong found that most goods have been at steady prices, except for Chinese goods that briefly faced tariffs as high as 145%, but are now subject to 30% tariffs.

When it comes to items like rice and noodles, Vuong avoids marking up prices because they're staples for many households.

"I try to keep my prices affordable for customers right now since a lot of people are going through hard times," Vuong said. "There's a lot of people who don't have work. Companies are cutting back on employees and stuff. So everybody's watching their dollar."

Asian Market clerk Sao Khaoone greets customers at the McHenry Avenue market in Modesto, Wednesday, July 2, 2025.

Nick Corwin, a customer at Indian Grocery and Chaat, has shopped at specialty stores his whole life for spice blends, Indian cookware and in-store restaurants. Despite rising prices, Corwin chooses to shop at specialty stores for spice blends that can be stretched to use in multiple meals, rather than having to buy multiple items for fewer meals.

"In the past, I've stocked up too much on different specialty spices," Corwin said. "Now we're getting them as we need them instead of just having a whole pantry full. One box of biryani spice can be used for 50 cups of rice."

For Vuong, it has been difficult to predict price changes due to the speed and duration of recent tariffs – a struggle he knows his customers are also facing.

"I haven't seen prices increase like this before, because they increased quickly," Vuong said. " Other times the price increased gradually, a little bit ahead of time. This is probably the first time that I've seen everything increase this fast."

The price of fish sauces have been affected at Asian Market in Modesto, Wednesday, July 2, 2025.

Asian Market owner Trong Vuong with his parents Nai Truong, middle, and Hanh Vuong, right, who established the market in 1984. Photographed in Modesto, Wednesday, July 2, 2025.

The latest local, national and international news delivered every weekday morning.