According to the latest Reuters survey, nearly 90% of Japanese companies believe that US President Trump's policies will have a negative impact on their business environment. This result highlights Japan's deep concerns as the largest foreign direct investor in the United States about Trump's policies.

Survey results: Enterprises are generally pessimistic

According to the survey, about 86% of the surveyed companies stated that Trump's policy measures will have adverse or relatively adverse effects on their business environment, with only a few companies believing that these policies will have a positive impact. This proportion has significantly increased from 73% in December last year, reflecting the growing concerns of Japanese companies about Trump's policies.

The prospect of tariff hikes and intensified trade frictions between the United States and China has particularly made Japanese companies uneasy. As a staunch ally of the United States, Japan heavily relies on China as its manufacturing base and main export market, putting it in a dilemma in the US China trade friction.

Reasons for negative perceptions

Among companies that hold a negative view of Trump's policies, 72% of them believe that Trump's trade strategy (including imposing more tariffs) is the most unfavorable factor, while 26% of companies see deepening tensions between China and the United States as the main risk. The manager of an information service company wrote in an investigation, "Strengthening protectionism will only have a negative impact on the global economy

Positive views of a few enterprises

Although most businesses hold a negative attitude towards Trump's policies, there are still some that see positive factors. Among companies with a positive view, 37% believe that deregulation and tax cuts are the most favorable factors, while another 37% believe that Trump's policy of promoting fossil fuel production growth is beneficial to their business.

Enterprise investment plan and expected interest rate hike

When asked about their plans to conduct business and invest in the United States, 16% of the surveyed companies stated that they would take a more cautious stance, while 80% of the companies stated that they have not changed their plans. In addition, the survey also showed that 61% of respondents believe that the Bank of Japan's recent interest rate hike is appropriate, 25% believe it is too early, and 15% believe it is too late. Regarding the ideal timing for the next interest rate hike, 24% of respondents chose the third quarter of this year, 24% chose "next year or later", and another 24% stated that it is not suitable to raise interest rates at any time.

About 44% of the surveyed companies stated that raising interest rates to 1% will have a negative impact on their capital expenditures, while 21% of companies believe that raising interest rates to 1.5% or above will have a negative impact on them.

summary

Trump's policies have sparked widespread concerns among Japanese businesses, with nearly 90% of them believing that these policies will have a negative impact on their business environment. The intensification of trade frictions and tariff increases are the main risk factors, although a few companies have seen the positive impact of deregulation and tax reductions. At the same time, Japanese companies have divergent attitudes towards the central bank's interest rate hikes, and future policy adjustments will have a significant impact on their capital expenditures and investment plans.