Japanese giants Sony (NYSE:SONY) and Suntory are stockpiling inventory in the U.S. as they brace for potential tariffs, while others in Japan’s export-driven economy shift production to avoid trade penalties. President Donald Trump has hinted at targeting Japan after imposing tariffs on Mexico and China, putting major companies on high alert.
Honda (NYSE:HMC) has already opted to manufacture a top-selling model in the U.S. instead of Mexico, and Japan Display is considering moving some production stateside to mitigate risk. Apple (NASDAQ:AAPL) suppliers like Alps Alpine and Murata Manufacturing are also restructuring supply chains to shield operations from trade friction.
Japan, a key U.S. trade partner, is particularly vulnerable to tariffs as its economy relies on overseas sales. The U.S. has accused Japan and China of currency devaluation, prompting fears of further trade measures. Nearly 90% of Japanese companies expect Trump’s policies to impact business, with 72% citing tariffs as the biggest concern. The Daiwa Institute of Research estimates a prolonged trade war could cut Japan’s GDP by 1.4%.
Sony has ramped up U.S. stockpiles of PlayStation and electronics, while Suntory is adjusting supply routes, shifting tequila exports from Mexico to the U.S. and Scotch whisky sales to Europe. Alps Alpine is bringing production back to Japan, and Murata is restructuring operations, making Chinese products for domestic use only while exporting from Japan and Thailand.
More than 300 Japanese firms, up 50% from last year, are planning U.S. expansion due to tariff fears, according to JETRO. The uncertainty has also driven demand for tax and audit specialists as businesses navigate shifting trade policies.
