According to the Reuters survey, 9 out of 10 companies in Japan feel threatened by US President Donald Trump’s policies. Moreover, 73% of the Reuters survey respondents claimed that Trump’s second term in the white house would harm their business environment. Further, 86% of respondents believe Trump’s policy measures will negatively or somewhat negatively impact their business environment, while the rest anticipate a positive or somewhat positive effect.
The survey further stated that the two major factors that are the cause of worry for Japanese businesses are Trump’s tariff policies and deepening friction between China & America.
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Japan has deep ties with America but is also firmly reliant on China as a manufacturing base and an important market for its exports. And Donald Trump has imposed a 25% tariff on Steel and Aluminium imports, a 10% tariff on goods from China, and warned Canada & Mexico of steep tariffs.
Further, the US President has also instructed his economics team to develop plans for reciprocal tariffs on countries that impose taxes on U.S. imports and to address non-tariff barriers. While Japan does not levy car tariffs, the U.S. government claimed during Trump’s first term that various non-tariff barriers restricted access to Japan’s automotive market.
