Most Japan Firms See No Need to Follow the US with Tariffs on China

A businessman walks in Tokyo's business district, Japan·Reuters
A businessman walks in Tokyo's business district, Japan·Reuters
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Most Japan Firms See No Need to Follow the US with Tariffs on China

A businessman walks in Tokyo's business district, Japan·Reuters
A businessman walks in Tokyo's business district, Japan·Reuters

Most Japanese companies see no need for their government to follow the US in raising tariffs on Chinese imports, saying excessive production capacity in China's industrial sector does not affect them, a Reuters survey showed on Thursday.

US President Joe Biden last month unveiled steep tariff increases on an array of Chinese goods including electric vehicles, batteries and semiconductors, criticizing Beijing for generous subsidies and policies that he said help flood global markets with cheap goods.

The European Union has also slapped hefty duties on EV imports and the Group of Seven major economies, which includes Japan, last week echoed concerns about what they called harmful non-market practices by China.

But 61% of respondents to the survey, conducted June 5-14, said there was no need for Japan to embark on similar measures. The rest said Japan should. Around 53% said China's excessive production capacity had little to no impact on their business, Reuters reported.

"It could lead to an escalation in measures and countermeasures against each other and economic conditions will get worse," a manager at a chemical company wrote in the comment section of the poll.

In response to the tariffs, China has accused the United States of subverting its own free trade principles and has said the G7 statement lacks factual basis.

The survey of 492 companies was conducted for Reuters by Nikkei Research, with firms responding on condition of anonymity. Roughly 230 companies responded.

The companies were also asked whether they think a pledge by Prime Minister Fumio Kishida to have wages consistently climb faster than inflation was attainable but only 7% did.

"I'm afraid there are many mid-sized and small companies that just can't make ends meet if they implement wage hikes that keep pace with inflation," a manager at a wholesale company wrote.

Half said the goal was not attainable while 43% said it was hard to tell.

As a temporary measure to cushion the economic blow from rising inflation, Kishida's government is cutting annual income tax by 30,000 yen ($190) and the residential tax by 10,000 yen for each taxpaying citizen who can also claim the same amount in tax breaks for dependents and a spouse with limited income.

But 69% of the companies in the poll saw the measure as having little or no effect in stimulating consumer spending.

On domestic politics, 54% of the companies expect Kishida to be replaced as prime minister by the end of the year in the wake of a fund-raising scandal.

The ruling Liberal Democratic Party (LDP) has said more than 80 of its lawmakers received proceeds from fund-raising events that were kept off the books. Prosecutors have indicted three lawmakers.

An Asahi newspaper poll conducted last week showed support for Kishida's government fell to 22%, down 2 percentage points from a month ago and the lowest since he took office in October 2021.

Former Defense Minister Shigeru Ishiba was corporate Japan's top choice for the country's next leader, with 24% of firms deeming him a suitable successor. Economic Security Minister Sanae Takaichi was next with 14%.

A security maven, Ishiba regularly ranks high in voter surveys on future prime ministers but is less popular with fellow LDP lawmakers whose backing is necessary to win the party's leadership election.

About 80% of companies said they want the LDP and junior coalition partner Komeito to remain in power if Kishida calls a snap election this year.

If the coalition government were to lose power, "I fear that political confusion might develop into economic confusion and the weakening of Japan's competitiveness," a manager at a food company wrote.

Only 6% of the companies surveyed wanted a government led by the Constitutional Democratic Party of Japan, currently the largest opposition party.



India Imposes Temporary Tariff on Some Steel to Stem Cheap Imports from China 

A worker stacks pressed steel items at a factory which produces metal products for export, in Binzhou, in China's eastern Shandong province on April 15, 2025. (AFP)
A worker stacks pressed steel items at a factory which produces metal products for export, in Binzhou, in China's eastern Shandong province on April 15, 2025. (AFP)
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India Imposes Temporary Tariff on Some Steel to Stem Cheap Imports from China 

A worker stacks pressed steel items at a factory which produces metal products for export, in Binzhou, in China's eastern Shandong province on April 15, 2025. (AFP)
A worker stacks pressed steel items at a factory which produces metal products for export, in Binzhou, in China's eastern Shandong province on April 15, 2025. (AFP)

India, the world's second-biggest producer of crude steel, on Monday imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China.

A flood of Chinese steel in recent years has pushed some Indian mills to scale down operations and mull job cuts, and India is one of a number of countries to have contemplated action to stem imports to protect local industry.

The Ministry of Finance said in an official order that the duty would be effective for 200 days from Monday, "unless revoked, superseded or amended earlier".

The move is New Delhi's first big trade policy shift since US President Donald Trump imposed a wide range of tariffs on countries in April, kicking off a bitter trade war with China.

Tensions over cheap steel imports into India predate that, with the investigation behind the latest move beginning in December.

India's Steel Minister H. D. Kumaraswamy said in a statement the measure is aimed at protecting domestic steel manufacturers from the adverse impact of a surge in imports, and will ensure fair competition in the market.

"This move will provide critical relief to domestic producers, especially small and medium-scale enterprises, who have faced immense pressure from rising imports," Kumaraswamy said.

New Delhi's tariffs are primarily aimed at China, which was the second-biggest exporter of steel to India behind South Korea in 2024/25.

"The decision is along expected lines and we will now wait and see how this measure supports (the) industry and margins and restricts cheap imports into the country," said a senior executive at a leading Indian steel mill.

"The world is impacted by Chinese imports whether directly or indirectly," said the executive.

India was a net importer of finished steel for a second straight year in 2024/25, with shipments reaching a nine-year high of 9.5 million metric tons, according to provisional government data.

New Delhi's leading steelmakers' body - which counts JSW Steel and Tata Steel among members, alongside the Steel Authority of India and ArcelorMittal Nippon Steel India - has raised concerns over imports and called for curbs.