Latest news with #JapanAssociationofCorporateExecutives
South China Morning Post
01-05-2025
- Business
- South China Morning Post
Japan urged to reduce US reliance amid Trump uncertainty, and embrace Global South
The head of the influential Japan Association of Corporate Executives business lobby has urged the country and its companies to reduce their reliance on the US as their main trading partner and instead bolster supply chains with emerging and developing nations in the Global South Advertisement While economists who spoke to This Week in Asia broadly agreed that Japanese firms need to diversify their markets and partnerships, they cautioned that no other market can match the size and significance of the US – even amid the disruptions caused by President Donald Trump' s trade policies. In an interview with the Yomiuri newspaper published on Tuesday, association chairman Takeshi Niinami said it had become clear that the tariffs announced by Washington meant it was 'no longer the same as it used to be, and other nations should not rely on it'. As countries worldwide scrambled to reinforce their economies and forge new trade alliances, Japan 'must act immediately to enhance its competitiveness with a sense of urgency,' Niinami said. He added that the response from world markets to the on-again, off-again tariffs has reflected their chaotic implementation, increasing uncertainty in the global economy. Advertisement While some anticipate that the US may return to normality after Trump leaves office, Niinami noted that this was not guaranteed since Trump was elected by individuals who were angry because they believed that globalisation had cost them jobs, widened the gap between rich and poor, and exacerbated societal divisions.
Japan Times
22-04-2025
- Business
- Japan Times
Trump tariffs are killing investment appetite, Suntory CEO says
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.'
