Japanese companies should prepare for the fall of Trump’s tariffs, said the head of Suntory in Davos

By Divya Chowdhury and Rocky Swift

DAVOS, Switzerland (Reuters) – Japanese companies remain eager to invest in the United States but must prepare for potential supply chain shocks under Donald Trump’s presidency, the CEO of drinks giant Suntory Holdings said on Wednesday.

Takeshi Niinami, head of one of Japan’s largest business lobbies, said on the sidelines of the World Economic Forum (WEF) meeting in Davos that it was important for companies to demonstrate that their investments would create jobs in the US.

A survey last week indicated that most Japanese companies operating in the United States are bracing for the new tariffs.

“The imposition of tariffs by the Trump administration will create massive, unexpected changes in the supply chain landscape,” Nienami told the Reuters Global Markets Forum.

“Japanese companies must be agile to respond to any change,” he added.

Japan has huge trade surpluses with the US, a concern for Trump, but that conflict could ease as Asian nations buy US-made weapons and increase their military power, he said.

Ninami, 65, is one of Japan’s most influential executives, having served as chairman of the Keizai Doyukai business lobby and economic adviser to former prime ministers.

In the year In 2014, he became the first non-founding family member to lead the century-old Suntory. A $16 billion takeover of American spirits maker Beam that year. He will step down as CEO in March to Nobuhiro Torii, the grandson of Suntory’s founder.

Ninami hopes Nippon Steel’s $14.9 billion bid could be revived after the deal was blocked by President Joe Biden earlier this month.

Nippon Steel sued to overturn Biden’s decision. If the Japanese company can make a case that the companies are strong against China together and can stimulate American industry, it could distort the case, Niinami said.

As for his own company, Suntory is reconsidering investments in China due to the lack of positive signs in the market, but is eager to grow through local partnerships and manufacturing in India.

“We want to be one person in India,” he said.

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(Reporting by Divya Chowdhury in Davos and Rocky Swift in Tokyo; Editing by Kirsten Donovan)