A new “reciprocal tariff” agreement between the US and Japan went into effect on August 7. Prior to its implementation, Tokyo Shoko Research conducted a survey about the “Trump tariffs” from July 30 to August 6. The survey reveals that 31.9% of companies view the Trump tariffs negatively, down significantly from 57.6% in June. However, 86% believe the tariffs will lead to a downturn in Japan’s economy despite the impact on their own businesses being minimal.
Agriculture, forestry, fishing, mining, and transportation industries reported the highest concern, with nearly 90% perceiving the tariffs as negative for the economy. Companies are seeking support from the government, primarily through corporate tax cuts, which 50% of surveyed companies favor. Other supports include grants for business continuity and employment (39.2% for small businesses) and subsidies for operational efficiency (32.9% for large businesses).
Japanese companies must adapt to the tariffs, with large firms possibly shifting production to the US while smaller companies look for markets outside the US. The tariff impacts are likely to extend beyond manufacturing to other sectors and might affect consumer spending amidst rising costs and stagnant wages.
Specific survey results show that 31.9% of companies experience a negative impact from the tariffs, though the majority report no change. Among those reporting negative effects, 5.4% are considering downsizing or closure. Real estate and manufacturing sectors see higher proportions contemplating such measures. Moreover, 85.9% believe the 15% tariff measures agreed between Japan and the US will further slow Japan’s economy.
by MagazineKey4532