Local retailers are doing everything they can to protect customers from Donald Trump’s tariffs, a major local retailer has said.

Tony Thompson, chief executive officer of Gibbons Company spoke yesterday as the United States president paused higher tariffs on most countries but hit China with a 125 per cent rate.

“Despite these headwinds, many retailers in Bermuda are doing their best to shield customers from price increases,” Mr Thompson said.

China has often been called the world’s factory because the highest percentage of global goods, 28.3 per cent, are made there, compared to 17.34 per cent made in the US, and 7.74 per cent produced in Japan.

“Many local retailers are now navigating the ripple effects of ongoing geopolitical tensions, freight delays, and increased costs across the global supply chain that are directly or indirectly attributed to the increase in tariffs,” Mr Thompson said.

He said, at present, many vendors are holding prices steady, in the hope that current disruptions are temporary.

“Should these conditions persist, there is a real possibility that retail pricing could be impacted later in the year, particularly as we head into the autumn season,” Mr Thompson said.

Mr Thompson said the strength of Bermuda’s retail industry has always been adaptability.

“Retailers are proactively exploring alternative sourcing options, adjusting timelines, and tightening operational efficiencies to maintain a consistent flow of merchandise,” he said. “These steps are being taken with a clear focus on maintaining value and quality for local consumers.”

Gibbons Company is employing similar strategies to mitigate risk and reduce exposure to ongoing supply chain volatility.

“We are leveraging our logistics infrastructure and longstanding vendor relationships to remain as agile as possible in this shifting landscape,” Mr Thompson said. “We appreciate the continued support of the Bermuda community and remain committed to serving our customers with the highest standards – no matter the global challenges ahead.”

Chris Mayne, of Furniture Walk and Sleepers Paradise, is trying to order as much inventory as possible before the tariffs come online.

“We want to fill our warehouse to ride this out,” Mr Mayne said.

Most of their furniture is manufactured in the United States, but they do bring some things in from Brazil, Mexico and other places.

So far, they have not experienced any immediate price increases, but were worried about Trump’s plans to charge Chinese-manufactured container vessels a $1.5 million fee, every time they enter a US port. The Oleander, used to import most of Bermuda’s food and goods, was built in China in 2018.

The US Senate finance committee has been told that not all of the proposed fees to dock at US ports will be implemented, and they may not be cumulative.

A decision on the implementation of the USTR port fees could now come as late as November.

“The Oleander issue is very scary, but right now we are just waiting to see what happens,” Mr Mayne said. “We are very concerned.”

Dianna Armstrong, who runs an online golf-attire business, Make De Run, said Trump’s flip-flopping is making her anxious.

“It does not matter where you get your products, you still have to bring them in through the US,” she said.

Richard Simon runs several businesses under the Incentis umbrella including Island Advertising Specialties, BermudaTix, Just for Laughs Bermuda and electric car company ECO.

Although he sells Chinese cars, it is actually the promotional side of Incentis that is most threatened by Trump’s tariffs.

“My cars and parts come out of China, but they ship to Bermuda through a bonded warehouse in New Jersey,” he said. “So technically, they do not actually land in the United States.”

However, many items he brings in through Island Advertising, such as branded mugs, pens and bags are made in China and imported by firms in the US, then sold on.

He can bring some small items in through UPS or DHL from China, but the logistics of bringing in bulkier items is more difficult to figure out.

“The consumer will pay that, no question,” Mr Simon said. “It is complicated to ship directly to Bermuda. If my price goes up I have to pass that on to my customer. My solution has to be to ship from China to Bermuda and bypass the United States.”

Mr Simon, Canadian-born, was recently holidaying back at home, where he found patriotism to be at an all-time high.

“Canada is not for sale” T-shirts were everywhere and little Canadian flags decorated everything Canadian-made.

Mr Simon questioned if Bermuda could move its bonded port from Port Elizabeth to Halifax, Nova Scotia.