Japanese Firms Brace for Trump's Tariff Policies

Japanese companies with U.S. operations are preparing for potential additional tariffs under the Trump administration, according to a survey by Japan External Trade Organization. The survey, conducted earlier this month, showed concerns about negative business impacts and potential changes in immigration and visa policies.

Japanese companies operating in the United States are proactively preparing for the potential imposition of additional tariffs by the forthcoming Trump administration, as revealed by a Japan External Trade Organization survey unveiled on Friday.

The survey, targeting 694 businesses, highlighted that most firms are bolstering their manufacturing and procurement efforts stateside, with some considering raising product prices. Of 123 companies anticipating tariff-related impacts, nearly 75% foresee negative effects on business operations, with only a small fraction expecting mixed or positive outcomes.

Additionally, there are growing concerns regarding U.S. excise taxes affecting other nations, and a possible 60% tariff on Chinese goods threatens to disrupt supply chains. Immigration policy revisions could further exacerbate labor shortages, negatively affecting more than 60% of businesses surveyed.

(With inputs from agencies.)