Hawaii Small Businesses Struggle with Rising Tariff Costs

Vendors at Aloha Stadium Swap Meet describe impacts as Trump-era tariffs drive up prices of imported goods.

Jan. 28, 2026 at 9:47pm

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Some small businesses in Hawaii are adjusting how they source products to limit the impact of renewed federal tariffs, while others say the added expenses are becoming harder to absorb. Vendors at the Aloha Stadium Swap Meet described a range of impacts, with some switching suppliers or shifting toward American-made products to cut costs. However, for businesses that rely heavily on imported materials, adjusting is not always possible, leading to significant increases in expenses.

Why it matters

Small businesses account for more than 99% of companies on Oahu and are particularly vulnerable to sudden cost increases. The Hawaii Chamber of Commerce says the majority of businesses surveyed have been impacted by the tariffs, which are adding billions of dollars to federal revenue each month but being largely passed on to small business owners.

The details

At the Aloha Stadium Swap Meet, vendors described a range of impacts as the Trump administration increases tariffs on goods imported from countries including South Korea. Janet Gonzalez, owner of The Henna Shack, said tariffs added about $200 to the cost of her henna compared to last year, so she switched suppliers to a local source in California. Other vendors, like Nathan Morales of Hidahoe Hats, said they are cutting costs by sourcing products closer to home, shifting toward American-made and American-sourced products. However, for businesses that rely heavily on imported materials, like Russell Luntgren of Big Island Cymbids, adjusting is not always possible - he said a 35% tariff on imported bronze significantly increased his costs, with an additional $500 in tariffs collected by a delivery driver.

  • The Trump administration increased tariffs on goods imported from countries including South Korea in 2026.

The players

Janet Gonzalez

Owner of The Henna Shack.

Nathan Morales

Owner of Hidahoe Hats.

Russell Luntgren

Owner of Big Island Cymbals.

Sherry Menor

President and CEO of the Hawaii Chamber of Commerce.

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What they’re saying

“I used to get it from India, but I found a better local source in California.”

— Janet Gonzalez, Owner of The Henna Shack

“Buying an American-made product or American-sourced product actually turned out about the same once you factored in all the shipping.”

— Nathan Morales, Owner of Hidahoe Hats

“That was like a punch in the stomach for me because I had already placed the order before this tariff came into place.”

— Russell Luntgren, Owner of Big Island Cymbals

“Tariffs sound tough on countries, but it's not the countries that pay. It's the small businesses that pay.”

— Russell Luntgren, Owner of Big Island Cymbals

What’s next

The U.S. Supreme Court is expected to rule on whether the president has the authority to impose the tariffs without congressional approval.

The takeaway

This situation highlights the significant burden that tariffs can place on small businesses, who are often forced to absorb the increased costs or pass them on to customers. As the legal battle over the president's authority continues, Hawaii's small business community remains vulnerable to the ripple effects of these trade policies.