Japanese manufacturers say tariffs weighing on outlook
About 1,800 companies and groups from across the globe are participating in Manufacturing World Tokyo. The annual event kicked off in Chiba Prefecture on Wednesday.
An eyeglass frame maker from Fukui Prefecture in central Japan does business with a company exporting to the US. But the client told the manufacturer it would reevaluate production plans when the Trump administration introduced a 10-percent universal tariff in April.
"I think eventually there will be less demand," said an executive with the manufacturer. "To be honest, the outlook is not good."
A parts maker based in central Japan's Gifu Prefecture exports screws to the US that are used in chip-production. The firm's US subsidiary is shouldering a 50-percent levy on steel and aluminum that was implemented in June.
"Half of the tariffs can be passed on to prices, but it's been difficult to do that for the rest," says the parts maker. "The tariffs will put pressure on profits."
Trump has announced that he will impose 25 percent tariffs on imports from Japan from August 1st.
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