Fast Retailing Chairman: Irrational U.S. Measures Hurt Itself, Are Not Sustainable; Prolonged Tariffs Will Raises Prices
The Yomiuri Shimbun
Tadashi Yanai
Tadashi Yanai, chairman and president of Fast Retailing Co., the parent company of Uniqlo, said in an interview with The Yomiuri Shimbun that U.S. President Donald Trump's tariff measures and other 'irrational' policies cannot be sustainable as they are hurting the United States itself.
The following is excerpted from Yanai's remarks in the interview conducted by Yomiuri Shimbun Staff Writer Miyu Okada.
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Trump's tariff measures may destroy the foundation of free trade that has made the world prosper. Japan, in collaboration with the Association of Southeast Asian Nations and the EU, must call for the Trump administration to abolish the tariffs.
Once reciprocal tariffs take effect, the economy of Asia, which is the growth center of the world, will stagnate and the world's economy will stop growing. If the United States continues to implement measures that prevent other countries' development and pursues only its own interests through an 'America First' policy, it will be isolated.
It will also affect American people's lives. Major retailer Walmart said it would raise prices starting late this month. Retailers have warned Trump that the tariffs could lead to empty shelves in their stores.
My company still has stock in the United States, and it will last for the time being. However, if the tariff measures continue through the next quarter, we will have to raise prices. We know that further inflation is likely, and if there is nothing on the shelves, consumers will realize that the tariff measures are nonsense.
The United States' credit rating has been downgraded due to concerns over the widening budget deficit. I've heard that scientists and other highly qualified individuals are leaving the United States due to Trump's pressure on universities. Such irrational measures aren't sustainable as they hurt the country itself.
Trump is promoting his America First policy partly because the country's middle class is becoming poorer. Although Trump says he will bring the manufacturing industry back to the United States, his tariff policy won't encourage companies to increase their number of manufacturing hubs in the country.
First of all, there are many obstacles to overcome in reviving the U.S. manufacturing sector. There is a lack of suitable personnel for the manufacturing industry as the promotion of the development of service industries, mainly the finance and information sectors, has changed the business structure. You can't expect any industry to develop without training such personnel and raising their wages.
Even a country with the world strongest military and economy cannot afford to adopt a policy of unilaterally imposing tariffs. It is a good opportunity for Japan to call for zero tariffs to ensure its continued survival in the global supply chain.
It was not good that economic revitalization minister Ryosei Akazawa acted in an overly deferential manner when he met Trump. If Trump is to participate in the talks with Japan, Ishiba must meet him and explain Japan's stance in concrete terms.
Japan has been participating in the Trans-Pacific Partnership agreement and other international frameworks to promote free trade. It needs to create more international frameworks, such as a free trade zone with ASEAN and the EU, to establish a position from which it can strongly voice its views to the United States.
Tadashi Yanai
Yanai, 76, is a graduate of Waseda University's School of Political Science and Economics. He joined Ogori Shoji Co., now First Retailing Co., in 1972. The first Uniqlo shop was opened in Hiroshima in 1984 and Yanai has since grown it into one of the largest casual apparel brands in the world. He has been in his current posts since 2005.
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