In February, the new Donald Trump administration launched a new “reciprocal tariff” policy aimed at correcting the U.S. trade deficit and protecting domestic industry. The policy is designed to counter countries that impose high tariffs on U.S. products by imposing equivalent tariffs on them. Countries included in the policy include Japan, India, the European Union, and Brazil. Imports from Mexico and Canada are subject to a 25% tariff, while imports from China are subject to a 10% tariff. Mutual tariffs will be applied to other countries as well. The measures could have a serious impact not only on U.S. companies, but also on the Japanese auto industry, manufacturing, and trading companies.

Impact on the Global Economy

There are concerns that the Trump administration’s reciprocal tariff policy may violate World Trade Organization (WTO) rules and cause disruption to the international trade order. In particular, there is a growing risk that trade friction between the U.S. and its major trading partners could escalate into a global trade war with reciprocal retaliatory tariffs. For example, the EU and China have indicated their willingness to take countermeasures against U.S. tariff actions, which could disrupt global supply chains and increase production costs for companies.

In addition, higher U.S. tariffs could slow global economic growth. Increased tariffs could lead to higher consumer prices, which could curb consumer activity. In addition, companies may be forced to rethink their investment plans or relocate production facilities to accommodate higher tariff costs. The combination of these factors points to the risk of a global recession. This will naturally affect trends in international logistics, and the impact will be enormous and far-reaching, including the SCM, logistics, and procurement departments of shipper companies, as well as supply chain and logistics cost management. In addition, for players that have traditionally aimed to build sustainable supply chains from the perspective of the SDGs, the risk of U.S. supply chain fluctuations in light of additional U.S. tariffs and . The response that shipper companies need to take is an urgent issue.

Impact on Japanese Companies

Japan is one of the U.S.’s major trading partners and could be significantly affected by the Trump administration’s tariff policies. In particular, industries that are highly dependent on exports to the U.S., such as the automotive and electronics industries, are expected to face increased costs and reduced competitiveness due to higher tariffs. Japanese companies in the U.S. may also face lower profit margins and be forced to review their business operations due to higher production costs and supply chain disruptions. Furthermore, as trade friction between the U.S. and other countries intensifies, there is concern that a decline in global demand and increased market uncertainty will affect the overseas expansion strategies of Japanese companies. In particular, companies with production bases and sales networks in the Asian region face an increasing need to adapt to changing trade barriers across the region.

This session will provide a detailed explanation of the risks of cost increases, supply chain disruptions, and exchange rate fluctuations posed by these additional tariffs. Furthermore, Japanese companies must minimize the risks they face to ensure sustainable business operations.