A recent Reuters survey found that nearly 90 per cent of Japanese companies expect adverse effects from US President Donald Trump’s policies, reflecting rising concerns among businesses in Japan, the largest foreign direct investor in the US.
The uncertainty is driven by potential tariff increases and escalating US-China trade tensions, which could impact Japan’s economic prospects. As the world’s fourth-largest economy, Japan depends on both nations for trade and manufacturing.
The survey, conducted by Nikkei Research for Reuters, collected responses from 233 of the 505 companies contacted between February 4 and February 14.
Around 86 per cent of respondents said Trump’s policies would negatively or somewhat negatively affect their business operations, while only a small percentage expected any benefits. A previous survey in December had shown that 73 per cent of companies were concerned about Trump’s potential second term, indicating growing unease.
Among those with a negative outlook, 72 per cent cited trade policies, particularly additional tariffs, as the main concern, while 26 per cent pointed to deteriorating US-China relations.