Trump’s Tariffs
Alfredo G. Evangelista | Assistant Editor
In the first month of his presidency, President Donald J. Trump has signed Executive Order after Executive Order. The nature of the Executive Orders has ranged from rescinding over 70 Executive Orders previously issued by President Joseph Biden, Jr. to renaming the Gulf of Mexico to the Gulf of America.
On February 1, 2025, Trump signed three Executive Orders involving tariffs. One Executive Order titled “Imposing Duties to Address the Situation at Our Southern Border” imposed a twenty-five percent tariff on all products of Mexico. Another Executive Order titled “Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border” also imposed a twenty-five percent tariff on all products of Canada. The third Executive Order, titled “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China” imposed a ten percent tariff on all products of the People’s Republic of China.
The White House distributed a Fact Sheet explaining the issuance of the tariffs: “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA) … . President Trump is taking bold action to hold Mexico, Canada and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country … . Tariffs are a powerful, proven source of leverage for protecting the national interest. President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”
In response, Canada’s Prime Minister Justin Trudeau noted the close relationship between the United States and Canada. “This decision puts in peril a historic economic relationship, a relationship that has been the source of wealth, prosperity and possibility on both sides of the border…. As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities. They will raise costs for you, including food at the grocery stores and gas at the pump. They will impede your access to an affordable supply of vital goods crucial for U.S. security, such as nickel, potash, uranium, steel, and aluminum. They will violate the free trade agreement that the president and I, along with our Mexican partner, negotiated and signed a few years ago.” Trudeau announced Canada would, in turn, impose a twenty-five percent tariff on items from the United States.
Mexican President Claudia Sheinbaum also announced that Mexico would impose tariffs on U.S. goods. Sheinbaum also took issue with Trump’s characterization that the drug cartels had an alliance with the Mexican government, with Sheinbaum calling the characterization “slander.”
A couple of days later, on February 3, 2025, Trump reversed himself and issued another Executive Order pausing the twenty-five percent tariffs on Canada and Mexico until March 4, 2025.
On February 10, Trump issued another Executive Order imposing a twenty-five percent tariff on steel and aluminum imports, effective March 12. The Fact Sheet on the twenty-five percent tariff on steel and aluminum explained: “President Trump is taking action to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.”
And on February 13, Trump announced he was directing his administration to review reciprocal tariffs–where the United States would impose the same amount of tariffs other countries are imposing on the United States. (For example, India imposes an average 9.5% tariff on American goods, while the United States imposes only a 3% tariff on goods from India. In this scenario, the United States would increase its 3% tariff to equal India’s 9.5% tariff.)
What exactly is a tariff? The Chamber of Commerce of Hawai‘i explains that a tariff is a tax that a government adds to products coming from other countries. “This tax makes imported goods more expensive, so businesses—and, therefore, customers—have to pay more for them,” says Sherry Menor-McNamara, President and Chief Executive Officer of the Chamber of Commerce. “Governments might use tariffs to encourage people to buy locally made products instead.”
“When a country imposes a tariff (tax on goods coming in from other countries), importers must pay an extra fee to bring those goods into their country,” explains Menor-McNamara. “This cost is usually passed down to consumers in the form of higher prices. For example, if the U.S. imposes a tariff on imported aluminum, companies that use the product—like those making soda cans, cars, and airplanes—have to pay more. This can lead to higher prices for everyday items like canned drinks, kitchen foil, and vehicles.”
Historically, tariffs have been a part of the United States. The first tariff of approximately 5% started in 1789 as the new nation did not have the legal authority to collect taxes from the states. Income taxes began after the 16th Amendment was passed in 1913. After World War II, the United States engaged in more free trade agreements, such as the North American Free Trade Agreement in 1994. NAFTA was replaced by the United States-Mexico-Canada Agreement in 2018, during the first Trump administration.
The imposition of tariffs will affect Hawaii’s consumers, according to Menor-McNamara. “Because Hawai‘i depends heavily on imported goods, tariffs can raise prices on everyday items” In terms of the food industries, Menor-McNamara notes “Many families rely on imported products such as rice, canned goods, and specialty ingredients like bagoong (fermented shrimp paste), frozen seafood, fruits, vegetables, snacks, canned goods, etc.”
She also cautions that “Many homes in Hawai‘i, including those under reconstruction in Lahaina, rely on imported materials like cement, wood, and steel. If tariffs are placed on these imports, rebuilding efforts could become more expensive and take longer.”
Tariffs on electronics would also lead to higher prices. “Many families in Hawai‘i buy appliances and technology from brands that manufacture overseas (Samsung, LG, Bosch, Panasonic, etc.),” Menor-McNamara observes. “Tariffs on these goods could lead to higher prices for things like refrigerators, televisions, and even cell phones.”
Whatever happens in Washington, D.C. will truly affect Hawai‘i’s residents, including members of the Filipino community. “Hawai‘i is unique because we import the vast majority of our goods, including close to 90% of our food (according to Hawai‘i Public Health Institute),” notes Menor-McNamara. “This makes our local economy more vulnerable to price increases caused by tariffs. Filipino families, especially those who send money back to family members in the Philippines, may feel the effects too. If tariffs lead to higher prices, the cost of living goes up, making it harder to save money and send financial support to loved ones.”
While it may be impossible to keep track of all the announcements by the Trump administration, Menor-McNamara advises us to do so. “It’s important for Hawai‘i’s business owners to keep track of tariffs that impact industries like retail, construction, and food. One option is to choose locally made products, which supports small businesses and reduces potential impacts of tariffs.”
It will be more important to “buy and support local.” As the Made in Hawai‘i website (created by the State of Hawai‘i Department of Business, Economic Development and Tourism) states, “When you buy from Hawaiʻi companies, your purchase goes toward sustaining our local economy and helping small business owners survive and help them keep employees hired.”
Assistant Editor Alfredo G. Evangelista is a graduate of Maui High School (1976), the University of Southern California (1980), and the University of California at Los Angeles School of Law (1983). He is a sole practitioner at Law Offices of Alfredo Evangelista, A Limited Liability Law Company, concentrating in estate planning, business start-up and consultation and nonprofit corporations. He has been practicing law for 41 years (since 1983) and returned home in 2010 to be with his family and to marry his high school sweetheart, the former Basilia Tumacder Idica.