The Trump administration’s new tariff measures against Japan, which took effect on July 24, have drawn mixed reactions from Japan’s political and business communities — ranging from expressions of “regret” and fatigue over successive policy shifts, to more measured calls for strengthening supply chain resilience. Nippon Steel (5401.T) Chairman Eiji Hashimoto voiced strong displeasure, stating it would be “an extremely severe blow to global manufacturing,” while Hitachi (6501.T) Chairman Toshiaki Higashihara suggested the impact would be limited, revealing a divergence in corporate responses.

The latest measures replace the expired temporary across-the-board 10% surcharge tariff, which lapsed after the U.S. Supreme Court invalidated reciprocal tariffs. The Office of the U.S. Trade Representative (USTR) argued that Japan has not sufficiently implemented import bans related to forced labor on products such as Chinese cotton goods. The USTR decided to impose new tariffs of up to 12.5%, combined with existing tariff rates.

“Unreasonable” vs. “Calm” — Executives’ Candid Views Diverge

Nippon Steel’s Chairman Hashimoto expressed concern in the strongest terms. The company is proceeding with an investment plan exceeding ¥2 trillion (approximately $12.2 billion) for U.S. Steel, which it acquired in a massive deal. “We are investing and trying to contribute to the revival of American manufacturing, yet this seems somewhat unreasonable,” Hashimoto said, voicing his frustration. He further pointed out that tax increases on exports to the United States represent “an extremely severe blow to global manufacturing.” Contrary to President Trump’s stated goal of reviving manufacturing, Hashimoto questioned, “Are tariff policies truly effective? Negative aspects such as inflation are also emerging.”

Meanwhile, Sumitomo Corporation (8053.T) Chairman Masayuki Hyodo referenced the framework of $550 billion in investment and financing to the U.S. agreed upon in Japan-U.S. negotiations. “This does not significantly undermine the agreements we have secured thus far,” he said, taking a calm view, adding that “it is the role of the business community to finalize matters in a way that benefits both Japan and the United States.”

Hitachi Chairman Higashihara also explicitly stated there would be “no major impact.” The company has already built what he described as “completed supply chains” — analogous to fully assembled vehicles — for each region, including North America, Europe, and Asia, establishing a structure capable of absorbing the impact of tariff fluctuations. “I believe each company is also thinking about improving its own resilience,” Higashihara said, emphasizing the importance of advance preparation.

Fatigue Over “Constantly Shifting” Policies and Calls for Resilience

What uniformly troubles executives is the unpredictable policy management of the Trump administration. Fujitsu (6702.T) President Takahito Tokita candidly remarked that “(U.S. policy) keeps changing constantly.” Ricoh Chairman Yoshinori Yamashita also lamented the situation, citing the ongoing refund procedures for past reciprocal tariffs that were ruled illegal by the U.S. Supreme Court, saying it is “troublesome in various ways.”

Amid this normalization of uncertainty, President Tokita stressed that the strategy companies should adopt is to “focus on acquiring resilience.” Rather than reacting emotionally to each policy change, he argued that there is an urgent need to transform business structures to incorporate such changes.

Government Also Expresses “Regret,” Wary of Additional Tariff Investigations

Backlash against the administration also erupted from government ministers. Chief Cabinet Secretary Minoru Kihara criticized the move at a press conference on July 24, stating, “This measure of imposing tariffs on Japan on the grounds of the absence of import ban measures is regrettable.” Minister of Economy, Trade and Industry Yoshimasa Akazawa also countered, saying, “Japan’s industries and trade comply with international rules.”

However, the situation may not end here. The USTR is continuing investigations with an eye toward additional tariffs, and the final tax rate remains fluid. On July 23, the previous day, Chairman Hashimoto stated at a Keidanren summer forum that “we need to calmly assess whether the current unreasonable high tariffs will continue indefinitely.” He hinted at the possibility of future revisions while revealing a two-pronged approach of preparing for immediate disruptions.

In the era of “Trump tariffs,” where forecasting the business environment is extremely difficult, Japanese companies are once again being challenged to redesign supply chains that incorporate geopolitical risks and to develop the managerial agility to absorb policy changes.