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Fly By Jing has become a notable name in the world of chile crisp, a phenomenon that reflects the growing appreciation for bold flavors in American cuisine. Established in 2018 by Jing Gao, the brand aims to share the unique tastes of her Chengdu hometown with a wider audience. With a lineup that includes Sichuan chile crisp, zhong sauce, and hot pot base, Gao’s vision is to integrate Chinese flavors into everyday cooking, rather than confining them to specialized sections of the grocery store. The brand has seen substantial growth, with its products now available in a variety of retail locations, including large chains like Walmart.
However, the manufacturing of Fly By Jing products in Chengdu, China, presents challenges, particularly in the current trade climate.
On March 4, former President Trump announced a 10 percent tariff on all imports from China and Hong Kong, which was soon followed by additional increases. This series of tariffs exacerbates existing trade restrictions that stemmed from earlier trade disputes. According to the New York Times, prices for goods are expected to rise substantially, with estimates that households might pay an additional $1,600 to $2,000 this year due to these imposed tariffs.
The situation is impacting businesses like Fly By Jing that import products specifically catering to the needs of Chinese-American consumers.
Eater: Are these tariffs affecting your business?
Matt Dunaj: Absolutely, the tariffs are significantly influencing our operations. The unpredictability associated with these tariff changes complicates our budgeting and forecasting. This uncertainty makes long-term planning challenging, as we cannot effectively predict our costs for the year.
It sounds complicated. The tariffs started at 10 percent and were quickly raised to 20 percent.
Yes, these recent increases are layered on top of previous tariffs implemented during Trump’s first term, which the current administration has retained. Our costs have effectively doubled in a very short time, creating a lot of ambiguity for our future planning.
Are these tariffs altering your production volume or pricing strategy?
Closing in on price increases will be our final option. Last year, we successfully reduced our prices, which is quite a rare occurrence in this environment. Adjusting prices at retail can take a lengthy process to implement, and with fluctuating tariffs, these changes may become moot.
Lowering prices requires considerable effort and coordination across our team. If we were to increase prices to cover rising costs, it could lead to a situation where prices remain high indefinitely, impacting our customer relationships.
You mentioned that tariffs might limit your business’s creative potential. Could you elaborate on that?
Manufacturing in America would necessitate importing all ingredients separately, which would be economically unfeasible. Authenticity is central to our mission, and we draw our flavors directly from Sichuan, China. These tariffs not only introduce uncertainty but can also hinder our capacity to innovate.
Nevertheless, we are striving to adapt. In response to consumer sensitivity around prices, we are exploring product categories at a lower price point. For instance, our upcoming noodle product is set to retail between $3 to $4, compared to our chile crisp at $9.98.
Why is continuing to manufacture in Chengdu so vital to your brand?
Our approach stands in contrast to the isolationist tendencies reflected in current tariff policies. We aim to foster global connections among diverse cultures, rather than retreating into a nationalistic perspective. While we will adapt to these challenges, our commitment to our mission remains unwavering.
The interview has been condensed for clarity.
Source
www.eater.com