Most Japanese companies that have operations in the United States are currently preparing for possible additional tariffs after the inauguration of US President-elect Donald Trump.
The mentioned actions of the specified firms are evidenced by the results of a survey conducted by the Japan External Trade Organization. It’s worth mentioning that Donald Trump’s inauguration will take place on January 20th.
In preparation for potential additional tariffs, Japanese companies are taking measures such as strengthening manufacturing and procurement in the United States. Also, these firms are currently considering the possibility of raising product prices.
The mentioned survey was conducted in the current month. More than 690 companies were surveyed. This was reported by the Japan External Trade Organization.
Of the 123 respondents who expect that tariff policies will have an impact on their business, almost three-quarters are convinced that the corresponding consequences will be negative. Also, 17% of these respondents suggest that the mentioned factor will generate a mixed effect. Only 10% expect positive effects of tariff policies.
Japanese companies have also expressed concern about US excise taxes targeting other countries. In their opinion, a potential 60% tariff on goods imported from China will have the biggest impact on supply chains.
It is worth noting that many experts warn that Washington’s tightening tariff policy may become a negative factor for the United States economy. In this context, it is noted that the relevant measures will provoke an acceleration of inflation in the United States.
Among firms expecting changes in immigration and visa policies, more than 60% projected a negative impact due to labor shortages.
As we have reported earlier, Japan’s Factory Activity Shrinks.
