The impact of new and rising U.S. tariffs could soon hit closer to home, especially with a newly implemented 104% tariff on products imported from China to the U.S. 

From rising costs to supply chain strain, Guam isn’t immune to the ripple effects of U.S. trade policy. 

Today, local economists and leaders talk more about how our island is bracing for the impact of new and escalating tariffs.

“To basically protect the interests of manufacturers, producers of similar products in your home country,” said Dr. Roseann Jones, Economics Professor and Dean of the School of Business at the University of Guam. “It’s a tax on products entering your country.”

Dr. Jones said tariffs have long been used to retaliate against other countries, whether for political reasons or labor rights violations.

“Today, it’s retaliation against things like bringing fentanyl into the country, other exploitative measures from one country, or we don’t like their politics or policies,” said Jones. “A lot of businesses and consumers say, ‘We understand that, but at the end of the day, we want our products in our market. We like a rich and diverse product market, and we’d like it at a reasonable price.”

With over 60% of Guam's goods being imported from the U.S., Dr. Jones warns we could start seeing even higher prices on everyday items. 

“We will see, as we get our products from the U.S., an increase in the price of those goods because the U.S. is imposing a higher tariff rate,” added Jones. 

But Guam’s unique Customs Authority as an unincorporated territory means we don’t quite have to match U.S. tariffs on goods from Asia, which make up the rest of our profile.

“While the U.S. mainland and Puerto Rico will bear the burden of the excess costs attributable to those tariffs on those countries, Guam does not,” said Jones. 

For the dean, this gives Guam an opportunity to play a dual role, not just as “America in Asia”, but Asia in America.”

Guam Chamber of Commerce Chairman Tae Oh said the tariff strategy might be intentional chaos to strengthen U.S. negotiating power.

“They create chaos in order to leverage their positioning so that they can reap some of the benefits or come back to the table,” said Tae Oh. 

And while it’s early, some sectors may feel the sting more than others.

“Food is definitely one,” said Tae Oh. “Another area is automotive for sure. Unless some of our dealerships here are bringing in vehicles directly from Japan or Korea, that wouldn’t be a problem.”

As global trade tensions heat up, Guam's economic leaders are keeping a close watch. Whether these tariffs bring lasting strain, or spark strategic change, remains to be seen.