A new Reuters corporate survey shows that 71% of Japanese companies say the impact of U.S. tariffs is within expectations, with 84% keeping their investment plans unchanged despite a looming 24% tariff threat on some goods and an existing 25% tariff on autos.
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Many firms are taking a long-term view, noting the Trump administration’s limited term.
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Most companies said their business strategies remain steady in the face of trade friction.
On domestic policy, the survey revealed six in ten firms back a sales tax cut, amid rising inflation and ahead of Japan’s July upper house election. However, nearly two-thirds oppose funding it through government bond issuance, citing concerns over Japan’s ageing population and rising social security costs.
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The current sales tax stands at 10% (8% for food and newspapers).
This article was written by Eamonn Sheridan at www.forexlive.com.
