HONOLULU (KHON2) — At India Market in Moiliili, shelves are filled with specialty items from India, Europe, Asia and the South Pacific.
But starting this week, those imports are getting more expensive.
“All these goodies here are European items, and the prices are getting affected on all these items. Also the jams and preserves,” said Shereen Khan, owner of the India Market.
The end of the de minimis exemption, meant to make it harder for drugs and unwanted goods to enter the country, means small shipments that used to arrive duty free will now be taxed.
For niche stores like India Market, the impact taxes on foreign items is already showing.
“Now customers are very much selective of what are they getting. Versus before they would come and grab basket full of items,” said Khan.
Shoppers say it’s changing the way they buy.
“We just try to be very specific about staying on the budget we have,” said Valentina Yarovaya, who was shopping at India Market.
Check out more news from around Hawaii
Retail experts say the added cost is real – and the change means we’ll likely see higher prices at specialty stores and online. But the change could also benefit Hawaii businesses. Until now, overseas online sellers would often undercut local stores, some even selling knockoff versions of Hawaii-made products.
“So you are going to see prices going up. But you know, some of these websites that we’ve seen, they’ve been kind of questionable on some of the products that they’re selling too. So that might also stop some of the counterfeiting things coming through,” said Tina Yamaki, President of Retail Merchants of Hawaii.
Still, for small import markets, the worry is whether specialty items will stay affordable.
“Just have to tighten the seatbelt and see where we’re gonna go in the next four years,” said Khan.
Experts suggest budgeting carefully, doing comparison shopping and buying local when possible.
“If they are getting their things from foreign countries, it is going to be a little bit more expensive right now, but just shop around, you know, look at prices. Find things. This is kind of like consumer beware,” said Yamaki.
Experts say the biggest impacts will likely be seen in the coming weeks as new shipments arrive, and both businesses and customers will have to adjust.