Hawaii
Hawaii faces new inflation risk on top of Trump tariffs
Hawaii is facing a new inflation risk and incoming financial trouble due to President Donald Trump’s tariffs.
The state’s only interisland shipping company, Young Brothers, has applied to The Hawai’i Public Utilities Commission (PUC) to raise shipping rates by an average of 20 percent. Young Brothers has said this price hike will help cover the cost of new equipment, infrastructure and operating expenses. However, it will also raise the cost of shipping items between the islands.
Newsweek reached out to the PUC and Young Brothers via email for comment.
Why It Matters
This proposed rise in shipping prices within Hawaii comes at the same time as Trump’s retaliatory tariffs, which are expected to raise the cost of goods across the United States. This means Hawaii residents will not only pay more upfront for their goods but will also have to pay even more to ship them.
Hawaii is already one of the least affordable states in the country.
George Rose/Getty images
What To Know
With a house price-to-income ratio of 10.6 and 67.9 percent of a resident’s income needed to cover an average mortgage, Hawaii is the most expensive state in the country for housing.
Hawaii is the third most expensive state for goods in the U.S. due to existing shipping costs. Since everything has to be shipped to the islands, the cost of transportation is added to the price of the goods. So, a loaf of bread that costs $3.66 in Fayetteville, Arkansas, will cost $5.34 in Honolulu.
Young Brothers is set to host four public meetings about its application to raise costs. The first meeting is scheduled for April 7 at 5:30 p.m. at the Hawai’i Public Utilities Commission Hearing Room, 465 South King Street, Room 103, Honolulu.
Honolulu news station KHON2 reported that if the shipping company raises its prices, container shipping costs will rise by at least 20 percent. Shipping to Hilo will cost 35 percent more. Shipping a car will cost 30 percent more, and shipping refrigerated items will cost 40 percent more.
Young Brothers wants to raise prices to cover the cost of new equipment. Its Facebook account shows several shipping delays over the past year due to mechanical failures.
Trump tariffs on steel and aluminum may also result in their new mechanical purchases being higher than anticipated.
What People Are Saying
The Hawai’i Public Utilities Commission, in a statement: “The Commission will review Young Brothers’ requests to determine whether the proposed General Rate Increase, WICI, and Temporary Rate Increase are just and reasonable.”
What Happens Next
Young Brothers is hosting four public hearings about its proposal. The first is today, April 7, at 5:50 p.m. HST on Oahu. It will be hosted at the Hawai’i Public Utilities Commission Hearing Room in Honolulu.
The second is April 8 at 5:50 p.m. HST on Hawaii island. It will be at the Natural Energy Laboratory of Hawai’i Authority (NELHA), Kailua-Kona.
The third is April 9 at 5:30 HST at Hawai’i Community College in Hilo.
The fourth is April 14 on Kauai at 5:50 p.m. HST at the Līhu’e State Office Building.
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Hawaii urges residents to ‘leave now’ amid worst flooding in over 20 years
As Hawaii endures its worst flooding in more than 20 years, officials urged people in hard-hit areas to “LEAVE NOW”. That warning early on Saturday came after heavy rains fell on soil already saturated by downpours from a winter storm a week ago, and still more was expected over the weekend.
Muddy floodwaters smothered vast stretches of Oahu’s North Shore, a community renowned for its big-wave surfing. Raging waters lifted homes and cars and prompted evacuation orders for 5,500 people north of Honolulu. Authorities cautioned that a 120-year-old dam could fail.
“The remaining access road out of Waialua is at high risk of failure if rainfall continues,” an emergency alert said.
On the island of Maui, authorities upgraded an evacuation advisory to a warning for some parts of Lahaina, which is still reeling from a deadly 2023 wildfire, because of retention basins nearing capacity.
North Shore Oahu residents who did not evacuate were heartened in the morning by receding waters and moments of blue sky, but more rain was on the way.
“Don’t let your guard down just yet,” said Tina Stall, a meteorologist with the National Weather Service in Honolulu. “There’s still potential for more flooding impacts.”
Racquel Achiu, a Waialua farmer who stayed to care for her livestock, found her goats in knee-high water Thursday night, and an hour later, her family’s seven dogs were in danger of drowning in an elevated kennel. Her nephew and son-in-law rushed out into chest-high water to save them.
“My dogs’ heads were literally just sticking out of the water,” Achiu said. “There was so much water, I cannot even express.”
Governor Josh Green said the cost of the storm could top $1bn, including damage to airports, schools, roads, homes and a Maui hospital in Kula.
“This is going to have a very serious consequence for us as a state,” Green said at a news conference. He also said his chief of staff spoke to the White House and received assurances of federal support.
Green said the flooding was the state’s most serious since 2004, when homes and a University of Hawaii library were swamped.
Dozens and perhaps hundreds of homes have been damaged, but officials have yet to fully assess the destruction. Some 5,500 people were under evacuation orders.
Officials blamed some of the devastation on the sheer amount of rain that fell in a short amount of time on saturated land. Parts of Oahu received 8 to 12in (20 to 30cm), the National Weather Service said.
More than 200 people were rescued from the rising waters, authorities said, but no deaths were reported and no one was unaccounted for. Crews searched by air and by water for stranded people.
Winter storm systems known as “Kona lows”, which feature southerly or south-westerly winds that bring in moisture-laden air, have been responsible for the deluges in the past two weeks. The intensity and frequency of heavy rains in Hawaii have increased amid human-caused global heating, experts say.
Officials have been closely watching the Wahiawa dam, which has been vulnerable for decades, saying it was “at risk of imminent failure”.
Water levels in the dam about 17 miles (28km) north-west of Honolulu, on the island of Oahu, receded by late Friday and then went up again with overnight rain.
However the dam appeared to be less of a concern the following morning than the “breadth of hazardous conditions” across the island, said Molly Pierce, a spokesperson for Oahu’s department of emergency management.
She noted substantial flooding including in residential parts of Honolulu.
“We’re seeing the waters receding in a lot of places, but again with that saturation, just the smallest amount of water can bring those raging back up,” Pierce said. “So even if it’s blue skies where you are, I think we all know in Hawaii that if rain is falling on the mountain, it’s coming to you soon enough.”
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