The latest Reuters survey indicates that most Japanese firms feel a Kamala Harris presidency would be more beneficial for their businesses than a second term for former President Donald Trump. The survey underscores concerns about protectionism and policy unpredictability.
What Happened: About 43% of Japanese businesses favor Harris in terms of their corporate strategies and business plans, while a mere 8% chose Trump. About 46% were indifferent to the candidate, while 3% preferred neither, Reuters reported on Thursday.
Japanese firms are keeping a close eye on the U.S. presidential election due to the potential implications of a renewed U.S.-China trade war. Both countries are among Japan’s top trading partners.
A manager at a ceramics manufacturer voiced concerns about the potential of a trade war, economic friction, and security threats under another Trump administration, which could necessitate a shift in their business strategy.
Conversely, an official at a chemicals firm expressed optimism about a Harris presidency, stating, “We can expect current policies to be maintained by and large. That would give us better visibility into the future.”
Under the Trump administration, 34% of firms said they would need to review their foreign exchange strategy, 28% would realign their supply chains, and 21% would reduce their China operations.
Regardless of the election outcome, 13% of Japanese companies are considering reducing operations in China, while 47% plan to maintain their current exposure, according to the survey.
Why It Matters: The Japanese Prime Minister, Fumio Kishida, recently announced his intention to step down in September, setting the stage for a new leader to guide Japan’s economy. This development has drawn a variety of responses from government officials and analysts.
On the other hand, Trump blamed Harris for the ongoing global market selloff. In a post on Truth Social, Trump stated that the current Democratic leaders were the cause of the market downturn.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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