Trump tariffs are killing investment appetite, Suntory CEO says

Japan Times

22-04-2025

U.S. President Donald Trump's tariffs could drive a recession that will make companies reluctant to invest in the world's largest economy, according to the head of one of Japan's biggest beverage makers.
"The current tariff situation is losing the appetite from other countries to the U.S. This is really killing the appetite from the world,' Takeshi Niinami, chairman and CEO of Suntory, said in an interview Tuesday. The situation is "really concerning,' he added.
Niinami's comments come as the Japanese government engages the Trump administration in negotiations over its ramped up tariff campaign, with nations around to world watch how Japan fares. Officials in Tokyo are hammering out a strategy for a second round of negotiations with the U.S., after its chief negotiator held initial talks in Washington last week.
Trump's efforts to reshape international trade have led to wild swings in global markets and raised concerns the U.S. economy could enter a recession.
"Consumer confidence has been waning tremendously,' Niinami said. "Consumers nowadays are not spending willingly so they go to the economy instead of the premium products.'
If the trend continues, companies will focus on other parts of the world, like India and Indonesia, he said.
Niinami also serves as a senior economic adviser to the Prime Minister's Office and the chair of Japan Association of Corporate Executives, one of the biggest business lobbying groups.
U.S. tariffs will also have a negative impact on Japan's domestic economy, he warned, potentially reducing GDP by as much as 1% to 1.2%.
According to a Finance Ministry survey released Tuesday, the impact of Trump's tariff campaign has already filtered through to Japanese companies, with about 10% saying the measures have affected their businesses and more voicing concern on the future jolt.
The survey was conducted between April 9 and April 15 with 518 companies including those in the auto, steel and service sectors. Auto companies said some orders have already been canceled and one firm cut hours for factory workers, while those in the tourism sector said they are concerned that a stronger yen would weigh on inbound visitors, the survey showed.
Japan started formal trade negotiations with the U.S. last week, aiming for a reprieve from the tariffs but leaving without any. The Trump administration hit the nation with a 25% levy on cars, steel and aluminum despite Tokyo's repeated pleas for exemptions. It also slapped Japan with a 24% across-the-board tariff, which was pared back to 10% for 90 days from earlier this month.
This week, Finance Minister Katsunobu Kato is set to discuss currencies with his U.S. counterpart, Treasury Secretary Scott Bessent, during his trip to Washington to attend meetings including a Group of 20 gathering.
Kato said Japan is in touch with other nations on how best to convey widely shared concerns about the impact of tariffs during the meetings in Washington, implying that the U.S. will come under criticism for disrupting global commerce with protectionist trade policies. The World Trade Organization last week downgraded its projection for trade this year to a small contraction from a previous estimate of 2.7% growth.
"I think everyone has concerns about the tariff impact on the global economy and capital markets,' Kato said. "We share them and believe it's important to work closely to reduce uncertainty.'