Trump Tariffs Cause Uncertainty for Tokyo Companies, As Survey Finds Nearly Half Expect Negative Impacts

The Yomiuri Shimbun

17:41 JST, April 16, 2025

The Trump administration’s tariffs have injected significant uncertainty into Tokyo’s business landscape, with a recent survey by a private credit research agency revealing that nearly half of responding companies expect a negative impact on their profits.

To address these concerns, metropolitan and ward governments established small business advisory services and are actively considering other support measures.

Masaharu Shiraishi, 78, owner of White Technica, a machine parts company located in a dense cluster of small factories in Ota Ward, Tokyo, let out a deep sigh. “I’m just filled with anxiety about what the future holds,” he said.

Shiraishi has been manufacturing parts for more than 40 years, receiving orders from domestic airlines and electronics manufacturers.

He fears the tariffs could disrupt exports, which could lead to a drop in orders or pressure to lower prices of products. Checking news about U.S. President Donald Trump’s policies has become a daily routine at his workplace, he said.

So far, they have not affected his business in any way. However, the sheet metal and painting companies he has worked with for years in the neighborhood have recently closed one by one, possibly due to rising prices.

“Small factories in town are dwindling, and I fear that we’ll likely see further impacts from President Trump’s tariff policies,” Shiraishi said.

However, he added positively, “I’m determined to overcome these challenges by developing new products while considering using government subsidy programs.”

Hino Motors Ltd., a major truck manufacturer headquartered in Hino, Tokyo, exports about 7,500 units of partially assembled truck components to the United States annually.

While tariffs previously ranged from 2.5% to 4%, the U.S. imposition of an additional 25% tariff on imported automobiles raises concerns about increased local sales prices and a potential decline in exports, the automaker said.

As the firm has manufacturing bases in the United States, a company spokesperson said: “We are conducting an internal analysis of the impact of the increased tariff on sales and export volumes and will continue to closely monitor future developments in the U.S. government’s policies.”

Nearly half the Tokyo companies that responded said their business performance would be negatively affected, according to a survey conducted by Tokyo Shoko Research on April 1-8 regarding U.S. tariff policies.

The firm said it conducted the survey online, receiving responses from 959 companies. When asked how their business performance would be affected, 21.1% of respondents answered that their business performance would be “greatly negatively affected.” Combined with the “slightly negatively affected” response (27.3%), a total of 48.4% of the companies answered that their business performance would be negatively impacted.

In response to the question of how they are responding to the tariff policies, 173 companies gave multiple answers, with “reviewing the assumed internal exchange rate to a stronger yen” (9.2%) and “reducing the amount of raw materials, work in process, and stock” (6.9%) being the most common.

On the other hand, 64.7% of respondents answered, “nothing in particular.” A Tokyo Shoko Research representative said, “Many companies may not be able to see the tangible impacts of the tariff policy and be having difficulty deciding on countermeasures.”

In response to U.S. tariff policies, the Tokyo Metropolitan Government opened two free consultation services — management consultation and financial management — for small and mid-sized firms on April 4.

It received a total of 15 inquiries by Monday, including one from a company that exports medical equipment to the United States asking for information on subsidies. As for financial management, many firms inquired about the metropolitan government’s support menu, such as loans for future use.

Ota, Arakawa, and Edogawa wards have also opened consultation services in response to the tariff policies, but there were no notable inquiries by Monday.

“Currently, we are unable to ascertain the impact on companies,” a person in charge of management support division of Arakawa Ward said. “The situation is changing rapidly, and we would like to consider new measures in accordance with the content of future consultations.”