Written by Divya Choudhary and Rocky Swift
DAVOS, Switzerland (Reuters) – Japanese companies remain optimistic about investing in the United States but need to prepare for supply chain shocks that may arise during a Donald Trump presidency, the chief executive of beverage giant Suntory Holdings said on Wednesday.
Takeshi Niinami, who also heads one of Japan’s largest business lobby groups, said on the sidelines of the World Economic Forum’s Davos meeting that it is important for companies to show that their investments will create jobs in the United States.
A survey conducted last week showed that most Japanese companies operating in the United States are preparing to impose new tariffs.
“The tariffs imposed by the Trump administration will bring huge and unexpected changes to the supply chain landscape,” Nienami said at the Reuters Global Markets Forum.
“Japanese companies must be quick to respond to any change,” he added.
He said Japan maintains a large trade surplus with the United States, a sensitive point for Trump, but this friction may subside as the Asian country strengthens its military by purchasing American-made weapons.
Niinami, 65, is one of Japan’s most influential business executives, serving as head of business lobbyist Keizai Doyokai and an economic adviser to former prime ministers.
In 2014, he became the first non-founder in the family to lead century-old Suntory, engineering the $16 billion takeover of US spirits maker Beam that year. He will cede the role of chairman to Nobuhiro Tori, the grandson of Suntory’s founder, in March while remaining CEO.
Niinami expressed hope that Nippon Steel’s $14.9 billion bid for US Steel could be revived after the deal was blocked by then-President Joe Biden earlier this month.
Nippon Steel filed a lawsuit to overturn Biden’s decision. If the Japanese company can prove that the companies will be stronger together against China and can revitalize American industry, that could sway the case, Niinami said.
As for his own company, Suntory is reconsidering investments in China due to lack of positive signals in the market, but is keen to grow in India through local partnerships and manufacturing.
“We want to be someone in India,” he said.
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(Reporting by Divya Choudhary in Davos and Rocky Swift in Tokyo; Editing by Kirsten Donovan)