News & Updates

Quick Survey on the Perception of Japanese Companies in the U.S. Regarding the New Trump Administration’s Policies

Feb 06, 2025

Half of companies are taking a wait-and-see approach and many are especially wary of tariff policies

About this Survey

  • From January 8 to 10, 2025 (U.S. local time), JETRO conducted an online survey sampling 694 Japanese companies in the U.S. (subsidiaries and branches with 10% or more stake owned by Japanese firms), of which 260 companies responded (valid response rate: 37.5%).
  • This is the only current survey of its kind in Japan providing information on how Japanese companies in the U.S. view the incoming new administration’s policies and whether they have initiated any countermeasures in anticipation of the second Trump administration set to start on January 20.

Survey Key Findings

  1. 1. Wariness regarding specific tariff policies from the new administration
    Among the policies expected to be implemented by the new administration, Japanese companies in the U.S. are particularly wary about tariff increases, harsher measures against illegal immigration, stricter work visa screenings, and stronger Buy American policies. Notably, of the 123 companies that answered that they would be affected by the tariff policies, over 70% (72.4%) said they would be negatively impacted, fearing a hike in import prices and delays in delivery dates. Moreover, out of the 106 companies that also expect some impact from immigration and foreign worker visa policies, 61.3% feared a negative impact, worrying about difficulties in securing labor force as a result of policy changes.
  2. 2. Half of companies said they “did not know” the overall impact of the policy, 25% said it would be “negative“ and 11% “positive”
    Regarding the overall impact of the new administration's policies on their companies, about half of the companies (48.1%) answered they “did not know at this time.” This was followed by “negative impact” (25.0%) and “positive impact” (10.8%). Industry-wise, one out of two companies (52.2%) in the automotive parts sector pointed to a negative impact. On the other hand, a certain number of companies held a neutral view, considering there would be “a similar amount of negative and positive impact” (14.2%).
  3. 3. Positive effects are also expected from the new administration’s tax reform, economic and energy policies
    Expectations are high for the new administration to improve the business environment by reducing corporate and other taxes, curbing inflation, easing energy-related regulations and developing infrastructure, and the like. Among these, the highest expectations for positive impact were for tax reforms (47.3%), with also high expectations for economic policies such as inflation control (34.9%) and energy policies that will reverse those of the Biden administration (34.5%).
  4. 4. Tariff policies’ largest impact will be from baseline tariffs, followed by tariffs on China and then on Mexico
    In terms of tariff policies, the additional universal 10-20% baseline tariff on imports from all countries and regions, as well as increased tariffs on China will have a significant impact, the largest of which will be on supply chains if a 60% tariff is imposed on imports from China.
  5. 5. The most common response to the upcoming new administration's increased tariff policies is anticipatory measures
    In view of the upcoming administration’s increased tariff policies, most companies said they were currently taking anticipatory measures. For instance, many have already started enhancing their manufacturing and procurement within the U.S., adjusting their production bases and suppliers, considering raising product prices or ways to pass on higher prices to customers, and accelerating production, shipments and deliveries, before the policies are implemented. On the other hand, some companies are waiting for the policies to take place before considering how to respond to them.

Handout:“Quick Survey on the Perception of Japanese Companies in the U.S. Regarding the New Trump Administration’s Policies” (Survey Results)PDFfile(712KB)

Americas Division, Research & Analysis Department, Japan External Trade Organization (JETRO)
(Attn: ITO, ISOBE) Tel:03-3582-5545