How We Lost Our New [Big Island] Home To Trump's Illegal Tariffs

[ironyak]

Rough personal story from Will Bailey at Civilbeat. Probably some local expertise on PW that could share more about how these tariffs are impacting this type of affordable housing option here on the islands.

https://www.civilbeat.org/2026/02/will-b...al-tariffs
"Months before the last presidential election, my wife and I bought a house. It wasn’t an investment property or a speculative project — just a modest prefab container home from China, about $20,000. Steel walls, a simple frame, nothing elaborate. It was within reach for us, and it felt solid.

It took nearly eight months to build.

We live off grid on the east side of Hawaiʻi island. ... Living this way forces you to be deliberate — to plan purchases carefully, to save slowly, to avoid stretching beyond what you can carry.

The money for the container came from savings and from the back pay I received after being awarded a VA disability rating. My wife works as an elder care nurse in Hilo, and much of those savings were accumulated slowly, shift by shift.
...
After months of construction overseas, the unit finally shipped across the Pacific. We checked the tracking updates and counted the days. While it was at sea, new tariffs were announced and then took effect.

When the ship arrived, the importer sent us the bill from U.S. Customs. A 30% duty plus port storage and clearance fees had been assessed under the new tariffs. The total owed was over $10,000, and it had to be paid before the container could clear the port.

That money did not exist in our budget." (more at link)

[HiloJulie]

Will's article from the Civil Beat near the very end says:

We will keep saving and planning. That is what working families do. But something fundamental shifts when the arithmetic changes overnight. 

I'd say what really changes something even more fundamental is when the arithmetic changes AFTER YOU SIGNED ON THE BOTTOM LINE.

While there is not much else one could say about this entire debacle that would not just trigger being moderated or deleted for PunaWeb rule violation(s), the only possible upside I see for Will is that with the RIGHT tax attorney/professional, several of which are here in Hilo, Kona or Honolulu if needed, but he COULD, with some creative, yet perfectly legal, tax guidance have 100% of his losses declared as a "Capital Loss" and would be able to write off up to 3 grand a year (assuming married, filing jointly) on his income taxes returns and continue to carry the loss forward up to 3 grand each subsequent year until the loss has been totally exhausted.

[Durian Fiend]

That really sucks. I would imagine the tariff rate with China was a big concern and on their radar for quite some time since it had been yanked around like a yo-yo during 2025.

Still, if the final price was $30K for a constructed house that seems like a helluva deal!

[HereOnThePrimalEdge]

It’s bad enough being hit with tariffs every time we buy a bag of coffee (except Kona coffee) or anything made of steel or aluminum, etc, etc, etc, but for your home price to increase by 30% in 24 hours, with no notice, no work around, no legal basis is, what’s the word I’m looking for, criminal?

The real plan with tariffs was for every American to pay a national sales tax.  But if that tax were itemized separately on the bottom of your receipt when buying groceries at Malama Market, or lunch, or hardware we’d be outraged every time we shop.  It would stare us right in the face.  More like slap us in the face.  Instead, the cost of tariffs is passed on somewhat invisibly, added into the cost of goods, to everyone, even the poorest of the poor.  Living in a million dollar home in Kona?  You pay the tariff tax.  Huddling under a blue tarp in the Puna jungle, accessible only on foot through a small unmarked opening in the underbrush of uluhe ferns, strawberry guava, and cane grass?  You pay a tariff tax.  Equality 2026.

Will Bailey got pummeled with it all at once, and his careful planning went out the window.  Well, it would have gone out the window if he had one.

[HiloJulie]

40,000 foot observation: (while trying as hard as I can to keep it Puna/Hawaii)

Where are the normal posters who support the policies that allow ICE raids here in Hawaii, rounding up a handful of the "worst of the worst" as well as gazillions of innocent hard working undocumented immigrants as well as regular legal Hawaii residents and showing their support for this tariff policy as being as good of a policy?

Where are the normal posters who support the policies that cut SNAP benefits to 30ish plus percent of Hawaii residents and showing their support for this tariff policy as being as good of a policy?

Where are the normal posters who support the policies that cut Medicaid benefits to 30ish plus percent of Hawaii residents and showing their support for this tariff policy as being as good of a policy?

Where are the normal posters who support the policies that cut funding to science, medical and other research studies here in Hawaii and showing their support for this tariff policy as being as good of a policy?

Does anyone think they will see a penny of any tariff paid being refunded back to them now that these tariff policies have been ruled unconstitutional? FYI, the 40 ounce Great Value can of coffee at the Hilo WalMart was 15 bucks pre-tariff, 25 bucks post tariff. As of 5 minutes ago, it is still 25 bucks. Does anyone expect that 40 ounce can of coffee will ever go back to 15 bucks?

And does anyone believe they will EVER see Will's $20,000 pre-fab made in China home, now $30,000 with the added tariff EVER being made either in Hawaii or America for less?

Could it be that maybe people are starting to see that NONE of these policies really don't have THEIR own best interests at heart?

[Punatang]

Could it be that maybe people are starting to see that NONE of these policies really don't have THEIR own best interests at heart?

100% Julie. You nailed it again. 

My take is exactly the same as Durian Fiend's:

That really sucks.  I would imagine the tariff rate with China was a big concern and on their radar for quite some time since it had been yanked around like a yo-yo during 2025.
Still, if the final price was $30K for a constructed house that seems like a helluva deal!

The only thing I feel safe to add to Durian Fiend's wisdom, is this:

Puna Puna Hawaii Big Island Puna Hawaii Pahoa Puna Kapoho Kalapana Kaimu Puna Puna.

[HiloJulie]

My take is exactly the same as Durian Fiend's

That really sucks.  I would imagine the tariff rate with China was a big concern and on their radar for quite some time since it had been yanked around like a yo-yo during 2025.
Still, if the final price was $30K for a constructed house that seems like a helluva deal!

OK then, can either PT or DF or both explain how the tariff rate with China was a big concern for Will, or be on his radar when the opening sentence of the Honolulu Civil Beat article is:

"Months before the last presidential election, my wife and I bought a house."

[Durian Fiend]

My take is exactly the same as Durian Fiend's

That really sucks.  I would imagine the tariff rate with China was a big concern and on their radar for quite some time since it had been yanked around like a yo-yo during 2025.
Still, if the final price was $30K for a constructed house that seems like a helluva deal!

OK then, can either PT or DF or both explain how the tariff rate with China was a big concern for Will, or be on his radar when the opening sentence of the Honolulu Civil Beat article is:

"Months before the last presidential election, my wife and I bought a house."

A big concern as they waited for the construction to be completed and then shipped.  Tariffs apply when the product arrives in US, correct?  

According to Google the tariff rate on China in 2024 was approximately 20%, so they shouldn't have been completely blindsided by this.

[HiloJulie]

A big concern as they waited for the construction to be completed and then shipped.  Tariffs apply when the product arrives in US, correct?  

According to Google the tariff rate on China in 2024 was approximately 20%, so they shouldn't have been completely blindsided by this.

Which, one would think it would be safe to say was known when they paid the 20 grand to the China company to build the house. 

How was what happened subsequent to paying the 20 grand to the China company for the house have been foreseeable? 

If you entered into a contract with a Hawaii Island developer to build your new home in say HPP, for an agreed upon price of whatever, then waiting the 6 to 9 months for the developer to build the home, after putting up an earnest money deposit and arranging a mortgage only to go to the closing date 6 to 9 months later and then be told the price is now 30% more. Would that not in some way be considered illegal? 

Wrong? 

Predictable? 

What is the difference?

[Durian Fiend]

A big concern as they waited for the construction to be completed and then shipped.  Tariffs apply when the product arrives in US, correct?  

According to Google the tariff rate on China in 2024 was approximately 20%, so they shouldn't have been completely blindsided by this.

Which, one would think it would be safe to say was known when they paid the 20 grand to the China company to build the house. 

How was what happened subsequent to paying the 20 grand to the China company for the house have been foreseeable? 

Who said it was foreseeable?  OTOH, Trump did campaign on a pledge to hit China with much higher tariffs.
Looking back at this story, it seems that the big increase in port storage and clearance fees are what really took them by surprise. I can certainly understand missing this one.
And the changes POTUS made to these, btw, look like they are immune from the SCOTUS ruling.

Edit: It's not reasonable to compare buying a home from a local contractor to buying a prefab from China. There's a BIG difference!