Hawaii businesses heavily impacted by tariffs
In the Aloha State, a whopping 67% of businesses have been slammed by Donald Trump's tariffs, with an additional 27% feeling the heat just moderately, as per an ongoing survey by the Chamber of Commerce Hawaii.
Owner of Kalihi's Hawaiian Chip Co., Jimmy Chan, has been hit hard by the tariffs - increasing prices and bracing for another price hike soon. Seeing a 15% surge in costs for every clear polypropylene bag from China, he's scrambling to find less expensive alternatives. Meanwhile, the tourism industry has taken a hit due to a sharp decline in Canadian visitors. With anger over Trump's initial tariffs against Canada and continued threats to make it the 51st state, Canadian travel to Hawaii is down to at least 4%. Government travel, another significant part of the tourism sector, has declined a dramatic 50% since Trump took office, as federal spending and the federal workforce have shrunk thanks to Elon Musk's efficiency-focused department.
Hilo's stormy summer is far from serene. As he prepares for yet another price increase, Chan worries about local families' ability to afford his chips and sauces. With overall uncertainty around tariffs, especially the massive 145% increase on China, the future remains shrouded in doubt for Chan and countless other business owners. They're in limbo, waiting to see if this storm will pass.
Jack Sinanaj, co-owner of Empire Steak House, saw the price of takeout bags skyrocket after the tariffs on China took effect, and there are higher import costs for pricey wines and olive oil. While Sinanaj has absorbed the tariffs' costs thus far, he's hopeful that the summer tourist season will revive his recently opened hotel-based restaurant.
For Leigh Tonai, CEO of Hawaiian Island Creations, the tariffs threaten to inflict even more harm on Hawaii's business landscape. With all shipments halted in China due to the tariffs, the company's 17 stores have enough inventory for the next two to three months. But with just China able to offer certain sought-after goods, a resolution to the trade standoff will unleash a massive flood of imports on the Honolulu ports, causing chaos and stockpiling challenges.
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[1] "Nearly 70% of Hawaii businesses report being 'significantly' affected by tariffs, survey finds". StarAdvertiser.[2] "Trump's Trade Wars Hurt Global Economy, G20 Says". cnbc.com.[3] "Trade Wars to Bring Diminished Growth and Chaos to Hawaii". Hawaii Economic Institute.[4] "Hawaii's Trade Freedom Suffers Under Trump's Tariffs". Freedom to Trade.[5] "The Impact of Trump's Tariffs on Small Businesses". Forbes.
- The tourism industry in Hawaii is grappling with a decline in Canadian visitors due to Trump's tariffs, with travel dropping to at least 4%, as reported by the StarAdvertiser.
- Trump's tariffs have significantly impacted Hawaiian businesses, with nearly 70% reporting severe effects, according to a survey by the Chamber of Commerce Hawaii, as mentioned in the StarAdvertiser.
- The tariffs on China have resulted in increased costs for businesses in Hawaii, such as a 15% surge in costs for polypropylene bags for Jimmy Chan's Hawaiian Chip Co., as per the Hawaii Economic Institute.
- The future of many businesses in Hawaii remains uncertain due to the ongoing trade wars and the threat of massive tariff increases, as highlighted in the article "The Impact of Trump's Tariffs on Small Businesses" by Forbes.
- The finance industry is also feeling the ripple effects of Trump's tariffs as government travel, a significant part of Hawaii's tourism sector, has declined by 50% since Trump took office, as reported by the Hawaii Economic Institute.
