Some 37% of Hawaii businesses said tariffs make them “very concerned,” while another 40% are “somewhat concerned,” adding up to a whopping 77% of businesses feeling tariff anxiety, according to a new survey by ProService Hawaii.
And two-thirds of Hawaii businesses said they expect tariffs to effect them either “a lot” (33%) or moderately (33%), according to the survey of 286 island businesses.
Only 8% of respondents expect President Donald Trump’s tariff war to have no impact on them.
In a separate, ongoing survey of the impacts of Trump’s tariffs, the Chamber of Commerce Hawaii has so far found that 60% of its respondents report that they have “significantly” been affected, with another 28% saying they have “moderately” been, meaning tariffs already have hurt an overwhelming majority of the businesses that responded.
In a warning for Hawaii’s overall economy, 72% of respondents to the Chamber of Commerce survey said they plan to reduce business spending in response to the tariffs.
At the same time, 62% said they are “adjusting prices,” likely meaning they are raising prices.
More than 69% plan to reduce spending by cutting back on capital investments or expenses, followed by over 52% who plan to reduce spending on hiring and staffing and over 47% who expect to reduce marketing and advertising.
Asked in what various ways their businesses have been affected the most, 77% said product pricing with 75% reporting supply chain costs.
ProService Hawaii, the state’s largest provider of human resources services, conducted its survey from April 15 to Friday.
It asked questions beyond tariffs and sought opinions about the impacts of other economic pressures, such as the ongoing labor shortage and labor costs.
In general, 43% of the ProService Hawaii respondents predict that the cost of business will “significantly” increase over the next year, followed by 42% who expect their costs to “somewhat increase.”
At the same time, over one-third of businesses are “very” or “somewhat” confident that their businesses will grow over the next 12 months.
The small sign of optimism, ProService Hawaii concluded, means “they are betting on their own ability to adapt, compete, and grow. This quiet confidence underscores the entrepreneurial spirit that defines Hawaii’s business community: realistic about the challenges, but far from discouraged.”
Overall, though, the ProService survey revealed plenty of pessimism about the state of Hawaii’s economy and the future, with only 9% of respondents saying the economy is improving.
More than half — 53% — described the economy as “declining.”
When it comes to their costs, 77% said their operational expenses have increased over the past year “somewhat” (44%) or “significantly” (33%). Only 4% reported that their costs have decreased.
Only 7% of businesses said they have done more hiring in the past six months, while 18% are laying off or reducing staff.
Only 24% are increasing wages or benefits to stay competitive, and only 24% are implementing new workplace policies or training “to improve retention and engagement.”
By the numbers
>> 77%: Percentage of Hawaii businesses that are “concerned” about tariffs
>> 37%: Percentage of businesses that are “very concerned” about tariffs
>> 40%: Percentage that are “somewhat concerned” by tariffs
>> 53%: Respondents who describe Hawaii’s economy as “declining”
>> 9%: Businesses that believe the economy’s improving
>> 43%: Respondents who predict that the cost of business will “significantly” increase over the next year
>> 33%: Respondents whose operational expenses have increased “significantly”
>> 44%: Respondents whose costs have increased “somewhat”
>> 7%: Businesses that have done more hiring in the past six months
Source: ProService Hawaii
