Donald Trump’s administration is implementing strong tariff policies against various countries, causing Japanese companies to struggle to devise countermeasures.
The Nikkei reported that Nissan Motor, which has been producing vehicles for export to the U.S. in Kyushu, Japan, is considering shifting production to the U.S. as early as this summer.
Nikkei noted that this is the first move to shift production since the 25% additional tariff on imported cars was imposed. It pointed out that if production at Japanese factories decreases, small and medium-sized parts suppliers could be affected.
Additionally, the newspaper highlighted that with vehicle shipments accounting for about 10% of Japan’s GDP, transferring production could lead to a decrease in GDP, presenting a challenge for Japan to devise measures against industrial hollowing.
Furthermore, Nintendo has delayed the release of their next-generation console ‘Switch 2’, originally set for pre-order in the U.S. starting from the 9th.
The Yomiuri Shimbun explained that with President Trump imposing reciprocal tariffs of 54% and 46% on China and Vietnam, respectively, there is a possibility of a price increase for the Nintendo Switch produced in these countries.
The Tokyo Shimbun also reported that supermarkets and food companies in the U.S. importing and selling Japanese food products are anxious as the increased U.S. tariffs are expected to adversely affect their businesses.
Meanwhile, the International Trade Center (ITC) forecasted that due to the Trump administration’s tariff policies, Japan’s export value could decrease by $17 billion (approximately 24.8 trillion won) by 2029.