Tariff Challenges for Hawaiian Businesses
In recent years, businesses have faced tough choices due to the changing tariff policies from the Trump administration. One company impacted is Ramar Foods, a Filipino food importer based in California. When President Trump slapped a 17% tariff on goods from the Philippines, it nearly tripled their previous tax. This was a shock for a company that has been serving the Filipino community for almost 60 years.
Ramar Foods plays a crucial role in Hawaii, where many residents enjoy Filipino staples. From renowned ube ice cream to lumpia and sardines, they provide comfort foods that remind people of home. The company’s Hawaii branch manager, Michael Medina, explained the importance of their cold storage facilities, where they keep popular products.
The new tariffs hit hard. Medina noted, “We scrambled to ensure we had enough inventory and reviewed our best-selling items.” Facing rising costs, some businesses are raising prices, but Ramar has chosen a different path. “We decided to absorb the tariff increases,” he said, emphasizing their commitment to the local community, which includes a large population of Filipino immigrants.
Living in Hawaii is already costly, and Ramar wants to keep its prices approachable. The local Filipino community relies on these affordable options, and Ramar is committed to supplying them.
Interestingly, the Philippine government sees a silver lining. According to Arman Talbo, the Philippine consul general in Honolulu, the Philippines enjoys a relatively low tariff compared to other countries. This might provide an opportunity to increase exports to the U.S. They are actively working to enhance trade relations and make the most of their tariff situation.
As for Ramar Foods, the future remains uncertain. Medina mentioned their margins are dependent on ongoing announcements and market changes. “We have reasonable margins, but they can change quickly,” he pointed out.
In the face of shifting policies, business owners like Medina are learning to adapt, knowing that change is the only constant in today’s market.
For more on trade and tariffs, you can explore the U.S. Trade Representative’s website.
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