News
Teikoku Databank, a Tokyo-based credit research company, conducted an internet survey from Oct. 20 to Oct. 31 among 25,111 enterprises in Japan on the impact of the tariffs that the U.S. has imposed. It was revealed that one-third of the companies surveyed, more than 40% of the manufacturers, in particular, project that profit will decrease. On the other hand, only 0.7% see that profit will grow.
Varid responses were made by 10,427 enterprises, accounting for 41.5%. When asked how the recent trade agreement between Washington and Tokyo will affect business performances in fiscal 2025, 18.3% said they foresee slight profit decreases of less than 5%; 12.1%, mild profit decreases of 5% to 10%; and 3%, notable profit decreases of 10% or more for a total of 33.4%.
A construction company in Miyagi Prefecture, northern Japan, indicated that the Trump tariffs have lowered purchasing intention, making customers cautious about investment.
In contrast, a certain number of the companies, or 31.5% of the respondents, answered that they will not be impacted by the U.S. tariffs. At the same time, however, as many firms, or 34.4%, said they cannot see how they will be affected.
The survey revealed that the enterprises were almost evenly divided into those envisaging profit decreases, those anticipating no impacts and those being uncertain, while only 0.7% expect profit increases, indicating the trade agreement will only exercise positive influences in very limited cases.
