The economic outlook is shaky with our volatile stock market and the uncertainty of the tariffs with some of our key traders.
Following a call-in show last week with state and University of Hawaiʻi economists, The Conversation reached out to the Retail Merchants of Hawaiʻi.
President Tina Yamaki said members are nervous as they try to plan for the hike in the minimum wage, set to go from $16 to nearly $18 in January.
"They're trying to figure out how are they going to pay for that," she said. "It's still a substantial increase that a lot of our local retailers can't afford that right now. They're struggling. They also have a lot of their loans from COVID come up now, and they need to start paying that off as well."
Yamaki spoke to The Conversation about the uncertainty in the marketplace with the trade wars and softening consumer confidence.
“We’re just kind of holding tight and looking to see what happens all over the world. It's not just happening in Hawaiʻi. It's a nationwide thing that's going on right now, and we're also starting to see recession popping up in other countries as well. So we're just kind of bracing for it and trying to get ahead and plan as best we can,” Yamaki told HPR. “We never know when the tariffs are going to drop, what new tariffs are going to be out there."
Yamaki added that Hawaiʻi businesses also deal with higher baseline costs for shipping and goods.
"At the end of the day, the question is, how do you keep your doors open? Because they don't have a mainland sister or something that they can depend on. Local businesses are just here in Hawaiʻi," she said.
This interview aired on The Conversation on March 17, 2025. The Conversation airs weekdays at 11 a.m.
