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The Mainichi
24-04-2025
- Business
- The Mainichi
Trump tariffs hit Japanese food, beverage industries hard just as exports begin to expand
High tariff measures by U.S. President Donald Trump's administration have sent shockwaves through industries related to "washoku" (traditional Japanese cuisine), which has been booming overseas since being registered as a UNESCO Intangible Cultural Heritage in 2013. Domestic producers, who saw an opportunity to expand their market to overseas palates, including those in the United States, had been working hard to increase exports, and just as their efforts seemed to bear fruit, uncertainty over the tariffs has led to widespread anxiety and confusion. Long-established soy sauce maker 'extremely worried' "This is all happening just as we have prepared a system to expand exports to the U.S. I'm extremely worried about how our sales will trend in the future," said Yoichi Yugeta, the 58-year-old president of Yugeta Shouyu Inc., a soy sauce manufacturer founded in 1923 in Sakado, Saitama Prefecture, regarding Trump's tariff policies. In fiscal 2024, the company's soy sauce export sales had doubled from the previous year, with 40% of that destined for the U.S. market. Its "smoked soy sauce," known for its aroma, had gained popularity among local restaurants there for pairing well with meat dishes, resulting in a flood of orders. Anticipating demand for soy sauce overseas, particularly in the U.S., the firm completed a new soy sauce brewery in Sakado in March 2024. The construction cost some 120 million yen (around $843,000), an investment made under the assumption that strong U.S. sales would quickly recoup the expense only to be hit by the "Trump tariffs." While Japan was set to face a 24% "reciprocal tariff," it was announced a week later that the additional taxes would be suspended for 90 days. Such a situation has left Yugeta Shouyu unable to even set a sales price for its soy sauce in the United States. As it takes more than a year to brew soy sauce in traditional wooden barrels, it is difficult to adjust production volumes to respond to quickly changing policies. In the meantime, soy sauce intended for export to the U.S. gets made every day in large quantities. Yugeta commented, "If high tariffs force us to raise prices, a decline in U.S. sales is unavoidable. We need to quickly expand our sales channels to regions where there is demand to avoid ending up with unsold stock," as he turns his attention to Southeast Asian countries. He also urged the Japanese government, which has been slow to respond, to negotiate with the U.S. to protect all domestic industries, including the food sector. Pouring cold water on the global sake boom As the domestic market continues to shrink, Japanese sake brewers have found a lifeline overseas. In December 2024, Japan's traditional sake brewing was also registered as a UNESCO Intangible Cultural Heritage, creating a celebratory mood. However, Trump's reciprocal tariffs have poured cold water on the industry, especially when his country is Japan's largest trade partner for sake. "The impact is inevitable. With half of the American population supporting Trump, there's nothing we can do about it," said Koichi Murakami, head of the overseas business department at the Japan Sake and Shochu Makers Association, with a sense of resignation. While sake may be deeply associated with Japanese life, from festivals to evening drinks, its domestic consumption peaked over half a century ago in 1973. Since then, it has been falling due to factors such as the declining birth rate and aging population. Markets abroad have saved sake. Boosted by the washoku boom overseas, sake exports have roughly doubled in volume and quadrupled in value over the past decade. In particular, exports to the U.S. reached about 8,000 kiloliters in 2024, a 23% increase from the previous year, marking the highest volume. The export value also grew by some 26% year-on-year to roughly 11.4 billion yen (around $80 million), nearly matching the top market, China, at 11.6 billion yen. According to Murakami, sake exports to the U.S. began in the 1980s, gradually expanding from relatively inexpensive sake. Currently, sake enthusiasts have spread among the middle- to upper-classes, leading to increased exports of higher-priced sake. While some manufacturers, such as Asahi Shuzo Co. in Yamaguchi Prefecture, known for its "Dassai" brand, brew sake in the U.S., exporting sake made in Japan is the mainstream. Murakami maintained that it is still unclear how reciprocal tariffs will ultimately change. At the same time, he expressed concern that the tariff rates might be passed on to U.S. retail prices, potentially leading to a decline in sake consumption in the country. Concerns for high-quality Shizuoka tea Shizuoka Prefecture, one of Japan's leading tea-producing regions and the top exporter by prefecture, is also affected, leaving tea producers and traders buffeted by Trump's tariff policies. According to trade statistics from the Ministry of Finance, the national green tea export volume in 2024 was 8,798 metric tons, with an export value of 36.4 billion yen (approx. $259 million). Over the past decade, green tea export volume has surged by about 2.5 times, and export value by some 4.7 times. The top export destination for Japanese green tea is the U.S. with 2,852 tons worth 16.1 billion yen ($114 million), accounting for roughly 30% of export volume and about 40% of export value. Sugimoto Tea, which handles tea processing and sales in Shimada, Shizuoka Prefecture, said exports account for 80% to 90% of its sales, with half of that going to North America. Sugimoto Tea president Masaaki Sugimoto stated, "I have not received any reports that sales have been affected for now." However, with Trump's tariff policies remaining fluid, he is perplexed by the lack of a clear outlook for the future. On the other hand, unlike industrial products such as automobiles, green tea is more of a non-essential item, making some insiders believe that the impact of the tariff hikes may be limited. Yoshiaki Kobayashi, 81, who grows organic tea for matcha in locations including Fujieda, Shizuoka Prefecture, revealed, "We've heard from American customers through our distributors that they want to continue their business with us even if tariffs are raised." Yasuhide Uchino, president of the Shizuoka Japanese Tea Market, where the first auction for the season's new tea took place April 18, also expressed confidence, saying, "There may be some impact from the tariff increase, but high-quality tea that people can't find a replacement for will sell." Trump tariffs might unexpectedly benefit the tea industry, as China, a major competitor, is the primary target of these tariffs. There are hopeful voices from distributors that if Chinese tea exports to the U.S. stall, demand for Japanese tea might increase. The prefecture has established a liaison to consider responses to the Trump tariffs in collaboration with the public and private sectors, with an official stating, "First, we want to grasp the current situation in each industry."
Japan Times
17-04-2025
- Business
- Japan Times
U.S. tariffs overshadow Japan's agriculture and food exports
Reciprocal tariffs imposed by the administration of U.S. President Donald Trump are feared to throw cold water on Japan's efforts to expand its exports of agricultural and food products to the United States. Last year, Japan exported a record ¥1.5 trillion worth of agricultural, forestry, fishery and food products. Exports to the United States grew 17.8% from the previous year to ¥242.9 billion, surpassing those to China and Hong Kong, which had long been Japan's top export destinations. The United States is a key market for Japanese exports, with green tea, beef, rice, scallops and alcoholic beverages, including sake, especially gaining traction due to an increase in Japanese restaurants. "We were just beginning (to boost sales in the United States)," said an official at Hakkaisan Brewery, which produces the Hakkaisan brand of sake. The sake maker, based in Niigata Prefecture, has been expanding its overseas operations, aided by the listing of traditional sake brewing as UNESCO Intangible Cultural Heritage. It has signed a partnership agreement with the Los Angeles Dodgers baseball team, which includes Japanese baseball star Shohei Ohtani, to advertise Hakkaisan at the Dodgers' ballpark. While the company is also focusing on the European market, the United States is its largest export destination. The company will continue to work to expand in the U.S. market, but will have to consider diversifying export destinations if doing business in the United States becomes difficult, the official said. Ito En's green tea product for exports | Ito En / via Jiji Ito En has been boosting sales of its green tea products in the U.S. market thanks to the boom in Japanese cuisine and rising health awareness. It is gaining consumer recognition after featuring Ohtani in its advertising. Green tea was previously not subject to tariffs, so Ito En may be forced to raise prices. A company official expressed concern about a possible decline in consumer interest, and said that the company is "considering building a flexible supply system, including production in the U.S. mainland." Japanese goods need to be sold by "emphasizing that there are no alternatives" to them, said Kazuhito Yamashita, senior researcher at the Canon Institute for Global Strategies. Many Japanese goods are currently under a blanket 10% tariff that applies to all economies, while the country-specific part of the reciprocal tariffs has been suspended. Yamashita said that if the suspension is lifted, some Japanese products may be put at a disadvantage compared with goods from other countries. He noted the need to closely monitor other countries' negotiations with the United States.
Korea Herald
25-03-2025
- Entertainment
- Korea Herald
Jongmyo Jeryeak to tour Singapore, Japan, Hong Kong
The National Gugak Center is set to embark on a tour across Asia this year, with performances of Jongmyo Jeryeak planned for Singapore, Japan and Hong Kong. Jongmyo Jeryeak is a royal ceremonial performance that combines song, music and dance. It was originally performed during ancestral rites at Jongmyo Shrine, where the tablets of Joseon kings and queens are enshrined, honoring the eternal repose of royal ancestors. The music was originally composed in 1447 during the reign of King Sejong for performance at royal banquets and was modified in 1464 during the reign of King Sejo for performance at memorial rites. The NGC will perform on April 4-5 in Singapore as part of the Tapestry of Sacred Music festival at Esplanade. Singapore's National Performing Arts Center, reflecting the country's multicultural identity, hosts an annual festival that features religious music from various countries, creating a unique platform for cultural exchange. Following this, Jongmyo Jeryeak will be part of a special exchange performance celebrating the 60th anniversary of Korea-Japan diplomatic relations. This will include UNESCO Intangible Cultural Heritage performances from both nations, with Jongmyo Jeryeak taking the stage on April 19 at the Bunkyo Civic Hall in Tokyo. In return, Okinawa's traditional music drama Kumi Odori will be performed in Seoul in June. Jongmyo Jeryeak and Kumi Odori were inscribed on the UNESCO Intangible Cultural Heritage of Humanity list in 2001 and 2010, respectively. In November, the NGC will head to Hong Kong for its final international performance of the year. Invited by the Korean Cultural Center in Hong Kong, the performance will take place as part of Festive Korea on Nov. 8-9, marking the first time this ritual music will be introduced to audiences in Hong Kong. hwangdh@
