Trump's policies create economic uncertainty in Hawaiʻi

Economists from the University of Hawaiʻi discussed the uncertainty and risks posed by President Trump’s policies, particularly in trade, government operations, and immigration. They believe these policies create challenges for planning both for consumers and businesses. Professor Sumner La Croix highlighted concerns about Trump's confusing trade policies and how they might harm international relationships. He noted that the U.S. is threatening economic ties with allies like Canada, which could lead to negative outcomes for the economy. The lack of trust in U.S. policies could disrupt long-standing partnerships. Assistant Professor Steven Bond-Smith added that Hawaii's economy is struggling due to its reliance on tourism, which has not been growing as it once did. He emphasized that Hawaii has always been an expensive place to live, and current economic trends mean incomes are not keeping pace with the high cost of living. La Croix warned that increasing tariffs may not lower prices as suggested by Trump but could lead to higher costs for essential goods. He noted that uncertainty around tariffs creates challenges for businesses, making them hesitant to invest. The economists discussed potential ramifications of a recession, indicating that Hawaii, heavily reliant on U.S. tourists, may experience a significant downturn in visitor spending during tough economic times. They also addressed immigration policies, including potential deportations that could reduce the labor force in industries crucial for Hawaii, like construction and tourism. This might further exacerbate labor shortages and drive costs up. Finally, they pointed out Hawaii's need to diversify its economy beyond tourism. Efforts towards sustainable practices and natural resource stewardship could help create new opportunities. However, effective funding and a balanced discussion between tourism and local benefit are necessary for future growth.