Hawaii businesses taking considerable financial blows due to tariffs
The brutal truth about President Donald Trump's tariffs? They've taken a massive toll on Hawaii's businesses and economy. A survey conducted by the Chamber of Commerce Hawaii reveals that a whopping 70% of businesses have been significantly impacted, with another 27% moderately affected[2][5]. Let's dive into the dirty details.
Jimmy Chan, owner of Kalihi's Hawaiian Chip Co., is feeling the heat. Following Trump’s return to the White House, Chan hiked prices to accommodate increased costs, preparing for another jump in July due to tariffs on clear polypropylene bags from China - a price increase of nearly 15%[2]. Chan isn't the only one bracing for higher costs; he also worries about importing glass bottles for his popular "Raging Volcano" hot sauce.
As if the impact on businesses wasn't enough, the tourism industry has suffered as well. Canadian travel to Hawaii has dropped from 7% to at least 4% of all visitors, a significant decline blamed on Trump's Canadian tariffs and threatening remarks to make Canada America's 51st state[3].
Government-related travel to Hawaii has seen a 50% drop since Trump took office, which has made a significant impact on the tourism-dependent Valley Isle as it struggles to recover from wildfires[3].
To make matters worse, local businesses like Hawaiian Chip Co. are feeling the impact of increased supply chain costs and product pricing, with nearly 90% of survey respondents reporting such effects[4]. Customer demand is also being affected, with about 40% of businesses reporting changes in purchasing behavior due to the tariffs[4].
If that wasn't enough to worry about, businesses are planning to cut back on spending, investments, marketing, advertising, hiring, and staffing[4].
Chan has found cheaper packaging alternatives in Taiwan, but he'll have to shell out over a thousand dollars for each of eight "plates" to emboss them with his company logo and product descriptions[2]. Furthermore, he's grappling with additional expenses related to expanding his retail sales operation and wondering how much local families can afford to pay due to rising prices[2].
The uncertainty surrounding the tariffs makes it hard for businesses to plan and "know what to expect," says Chan, who fears the camel's back will break at some point[2].
The tariffs add to the already daunting economic uncertainty under Trump, including stock market instability and the impact on home and auto sales due to rising interest rates[1]. Many business owners in Hawaii who once supported Trump are now quiet, watching to see if this storm passes[1].
Jack Sinanaj, co-owner of Empire Steak House, has been stunned by the high costs of imported goods in Hawaii compared to even New York[1]. The tariffs on China have nearly doubled the price of the restaurant's takeout bags[1]. Sinanaj is optimistic that the summer tourism season will create a boom for his business, but sales have been decaying since he opened[1].
Leigh Tonai, CEO of Hawaiian Island Creations, is concerned that the full impact of the tariffs has yet to be felt, and if prolonged, it could be devastating[1]. The 145% tariff on China forced Tonai to halt shipments of goods from China, which may cause a backlog of inventory at Honolulu ports when the situation resolves[1].
To participate in the Chamber of Commerce Hawaii tariff survey and share your experience, visit surveymonkey.com/r/5DXRYRY[6].
- The economic strain caused by President Donald Trump's tariffs isn't limited to businesses, as the tourism industry in Hawaii is also experiencing a decline, with Canadian travel reducing from 7% to at least 4% of all visitors[3].
- The increased supply chain costs and product pricing due to tariffs are unfortunately being felt in the finance sector, as nearly 90% of survey respondents reported such effects[4].
- On top of the business and tourism industries, the general news is now rife with warnings about the long-term effects of these tariffs, as Leigh Tonai, CEO of Hawaiian Island Creations, expresses concerns that the full impact has yet to be felt[1].
