Automotive sector downbeat
Carmakers and automotive parts suppliers in Japan are increasingly pessimistic about business as US trade tariffs impact their sector, according to a new survey.
The Japanese government’s latest Business Outlook Survey shows the sentiment among large companies came in at minus 1.9 for the April-June quarter.
It was the first fall into negative territory since January-March 2024, reports Bloomberg.
A negative figure indicates more companies reported deteriorating conditions than those that saw improvements.
The survey shows industries most exposed to the increased levies introduced by US President Donald Trump this year have recorded steep drops in sentiment.
For carmakers and parts suppliers it tumbled from 8.8 in the previous quarter to minus 16.1, while steelmakers’ sentiment went from zero to minus 29.1.
The study, conducted by the Cabinet Office and Ministry of Finance, found the overall sentiment for large manufacturers dropped to minus 4.8. This was also the weakest result in the past five quarters.
The results come amid uncertainty over US trade policies after Trump introduced sweeping tariffs on a range of imported products.
Vehicles became subject to 25 per cent levies from April and all other products were hit with a 10 per cent tariff, which is set to climb to 24 per cent for Japanese goods in July unless the nations can strike a trade deal.
