TOKYO: The possibility that former US President Donald Trump will return to the White House is viewed as a cause for concern among Japanese companies.

A Trump administration may pursue greater protectionism, including raising tariffs, and undoing President Joe Biden’s efforts to reduce carbon emissions.

Trump’s return “would mean another tariff war,” said Takeshi Niinami, CEO of beverage company Suntory Holdings Ltd.

Trump has already said that he would impose a 10 pct tariff on all imported products and a 60 pct tariff on imports from China.

Japan Paper Association Chairman Masatoshi Kaku said that Japan’s economy would collapse if China’s economy falters due to the tariffs.

Trump has vowed to dismantle Biden’s clean energy policies if he returns to power.

Panasonic Holdings Corp., which runs an electric vehicle battery plant in the United States, expects US subsidies to boost its operating profit by 85 billion yen in the fiscal year ending this month.

Some Japanese companies, including Toyota Motor Corp., have decided additional investments in the United States amid expectations of growing demand for electric vehicles there.

“Benefits may disappear with changes in policies,” an official at a major Japanese securities firm said.

Some people say that the United States will keep moving toward protectionism even if Biden secures another term. He is believed to side with the United Steelworkers union, which opposes Nippon Steel Corp.’s plan to acquire United States Steel Corp.

“It is important that we don’t stir fears or concerns,” Ichiro Fujisaki, former Japanese ambassador to the United States, said, adding that “only about half” of Trump’s campaign pledges were realized during his first presidential stint.

Japan “should calmly inform Trump of the adverse effects of a uniform tariff rate hike on the US economy and the importance of the World Trade Organization,” he said.

Fujisaki also said that Japan should be prepared to work with the United States to implement necessary reforms at international organizations.

JIJI Press