She said she switched suppliers to limit the impact.
“I used to get it from India, but I found a better local source in California,” Gonzalez said.
Other vendors said they are cutting costs by sourcing products closer to home. Nathan Morales, owner of Hidahoe Hats, said his business shifted toward American-made and American-sourced products.
“Buying an American-made product or American-sourced product actually turned out about the same once you factored in all the shipping,” Morales said.
The Hawaii Chamber of Commerce said small businesses account for more than 99% of companies on Oahu and are particularly vulnerable to sudden cost increases.
“We did a survey back in October, and the majority had said that they had been impacted one way or another,” said Sherry Menor, president and CEO of the Hawaii Chamber of Commerce. “For small businesses, that’s a lot to take on.”
For businesses that rely heavily on imported materials, adjusting is not always possible.
Russell Luntgren, owner of Big Island Cymbals, said a 35% tariff on imported bronze significantly increased his costs.
Luntgren said he had already paid about $300 in tariffs online for a shipment from Turkey when a delivery driver arrived and collected an additional $500.
“That was like a punch in the stomach for me because I had already placed the order before this tariff came into place,” Luntgren said.
The U.S. Supreme Court is expected to rule on whether the president has the authority to impose the tariffs without congressional approval. The tariffs are adding billions of dollars to federal revenue each month, but business owners say those costs are largely passed on to them.
“Tariffs sound tough on countries,” Luntgren said, “but it’s not the countries that pay. It’s the small businesses that pay.”
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