Trump’s Economic Program is the Main Focus of Japanese Capital

In an exclusive interview with Nikkei, Chairman of the Japan External Trade Organization (JETRO) Ishiguro Noriyuki discusses the prospects for cooperation with the United States, which sets the trends for the development of Japan’s foreign economic activity.

N. Ishiguro, who is on a business visit to New York, confirmed that JETRO’s representative offices in the United States are currently closely monitoring the first steps of the emerging Trump administration in the context of tariff policy and its impact on supply chains, which will affect not only Chinese but also Japanese companies.

At the same time, he called on businesses to be restrained in revising investment strategies. In particular, the head of JETRO notes that a significant portion of cars and components are currently supplied to the United States from neighboring Canada and Mexico.

A possible increase in duties to 25% would effectively neutralize the advantages of Japanese production facilities located in these countries. However, it is not so easy to rebuild existing supply chains overnight, so it is better for companies to make decisions based on long-term planning.

In addition, during one presidential term of 4 years, the administration’s policy may change, so most Japanese companies will most likely not abruptly stop production, but will try to adapt to changing conditions. Thus, the market itself will act as a restraining factor in the introduction of increased tariffs, — believes N. Ishiguro.

Increasing tariffs, reducing imports from China and other announced steps can lead to an increase in prices, which will hit the interests of low-income citizens. The risk of “acceleration” of inflation may lead to a revision of the approaches of the new head of the White House.

Japan has been the largest investor in the US economy for the past five years. Commenting on the presence of Japanese enterprises in the local market, the chairman of JETRO emphasized that “their desire to invest in the American economy is not only not decreasing, but on the contrary, it is only increasing.”

JETRO prioritizes building close relationships with individual state governments and presenting investment opportunities for Japanese companies. When speaking to reporters, I. Noriyuki refrained from directly assessing the progress of the US Steel deal, noting that in subsequent initiatives it is important to emphasize the positive impact of such agreements on job security and regional economic development from the very beginning.

The head of JETRO expressed hope that the Trump administration will take these circumstances into account.