Stock markets plunged Thursday morning following President Donald Trump's announcement of a minimum 10% tariff on nearly all imported goods. The move is expected to send shock waves throughout the economy as consumers already struggle with the rising cost of living.
This comes as the Republican administration is imposing deep cuts to the federal government and firing thousands of public workers in an effort to downsize the government and reduce the deficit.
On top of that, there is news that the blue state of Maine is facing cuts to school programs funded by the U.S. Department of Agriculture in response to a dispute the president had with Maine Gov. Janet Mills.
Hawaiʻi Gov. Josh Green witnessed that exchange last month. The Conversation spoke with Green on Thursday morning about that and the possible fallout from a trade war.
Interview Highlights
On the effects of Trump's tariffs
GOV. JOSH GREEN: The tariffs are really dangerous for our country. They are going to cause a recession in my opinion, and that affects all of us. It affects everything we do. It probably affects travelers to Hawaiʻi, because there will be fewer people that have resources to come from not just the United States, but from other nations also. So I'm very concerned, and I'm prepared to manage the fallout from the Trump administration's decisions, but I really would prefer that they quickly pull back these tariffs and work out something with all the state governors where there's conflict, because it's just not good or healthy for anyone... It'll be tough on a day-to-day and month-to-month basis for working people. It's also going to be tough if people were in their 60s and they've seen their savings and pensions greatly diminished, or their 401(k)s. All of these things are very tough. And it will resolve, we'll emerge from this OK, as a country and as a global community, but it's too tough in the short term on some people, especially, if they're closer to retirement, they don't have as much wiggle room.
On the conflict between Trump and the governor of Maine
GREEN: I think and hope that Maine will be able to work out some kind of understanding with the federal government. Needless to say, the feds have a lot of different levers they can pull regarding states, and that became a personal conflict, which is good to avoid in general because none of us should let that happen if we can help it. I was there to witness the conflict, and it was a little distressing between the governor of Maine and the president, because I'm very fond of Gov. Mills… but right now, there's just a lot of conflict in the air and for my part, I'm trying to damp it down. There are some projects that we’re willing, of course, to work with the federal government on if they're going to help Hawaiʻi.
On keeping communication lines open with federal officials
GREEN: It will mean I have to go to D.C. periodically, and notwithstanding the absurd complaint from our friends over at Civil Beat that I shouldn't go to D.C. — I have to. I have to be present occasionally. Promise I'll fly coach and keep it cheap, but I got to fly there and fight for us. These are the realities of the current administration, and I think it will settle down after a year. I think that Elon Musk will probably leave and go back to his company, I'm guessing in the next couple months, because of the rules, they don't necessarily follow all the rules with Elon Musk, but his company's tanking, and their administration has become somewhat frustrated with him, I hear, so I don't know. I think there’s just a lot of work to do, and I want people to not panic. The market will return for their retirement. Things will get better, but they may get worse a little still before they get better.
On having to make up for federal cuts to social service programs
GREEN: There's a lot of questions about what the resources will look like for states, and all of us as governors, red state and blue state governors are worried about that. So like I said, everyone should know that we have to buckle up for a bumpy period and a bunch of these very quick actions by the federal government. But I'm super aware of what the consequences are. We're going to save and hold back some resources this session, some appropriations, so that once we see the full scope of any cuts that would hurt people, we'll come in with those reserves in a special session and fortify programs, health care services, education. So I'm trying to be as strategic as possible, noting that the federal government are in kind of a slash-and-burn mode.
On nominating Karen Nakasone to lead the Hawaiʻi Intermediate Court of Appeals
GREEN: If you don't mind, I'll make a special announcement here, right now on your program that I am, as of this moment, going to nominate Karen Nakasone, so a fourth woman judge, into the chief position at the Intermediate Court of Appeals. We congratulate Judge Nakasone. She's fantastic. Right now, she's already one of the members of the Intermediate Court of Appeals, and I feel strongly she'll be well-embraced by the Senate. She will become the chief of that court, and it's an important thing because we're restoring some additional women leadership to government and to the courts. So there are good things out there. There really are, but some days they feel like they're dwarfed by the very large decisions that come out of Washington.
Nakasone will fill the vacancy left by the movement of Judge Lisa Ginoza to the Hawaiʻi Supreme Court. Nakasone has served on the ICA as an associate judge since 2020.
This interview aired on The Conversation on April 3, 2025. The Conversation airs weekdays at 11 a.m.
