Analysis-Sony, Suntory build U.S. stockpiles as Japan faces Trump tariff threat

By Tim Kelly, Kentaro Okasaka and Rocky Swift

TOKYO (Reuters) - Japanese electronics elephantine Sony and drinks shaper Suntory are stockpiling inventory successful the United States portion their peers displacement accumulation oregon proviso chains successful efforts to fend disconnected an evolving menace of U.S. tariffs connected the export-reliant economy.

In his latest commercialized salvo this week, President Donald Trump hinted that helium mightiness people Tokyo next, aft throwing up caller tariff barriers against Mexico and China, low-cost accumulation hubs favoured by cardinal Japanese industries, specified arsenic automakers.

The standard of the tariff menace for Japan Inc has been further highlighted by Honda's determination to nutrient a caller exemplary of 1 of its top-selling cars successful the United States, alternatively of Mexico, Reuters exclusively reported connected Monday.

Japan Display, a large supplier of LCD screens to the car industry, said it was besides considering accumulation of immoderate items successful the United States, partially to debar tariffs, a determination a caller survey showed is being considered by hundreds of peers.

Major Japanese suppliers to iPhone shaper Apple - Alps Alpine and Murata Manufacturing - are among different firms looking to insulate proviso chains from escalating commercialized tension.

"Corporates are present much alert that Japan could besides beryllium a target," said Norihiro Yamaguchi, a elder economist astatine Oxford Economics.

Yamaguchi pointed to Trump's informing that the United States whitethorn usage tariffs to offset immoderate competitory disadvantage to its manufacturers if Japan and China bash not halt reducing the worth of their currencies.

The protectionist U.S. president is acceptable to levy reciprocal tariffs globally and industry-specific duties that could further wounded Japan, the world's 4th largest economy, a apical exporter to the United States and its biggest root of overseas investment.

Japan has denied devaluing its currency and pledged U.S. investments to assuage Trump's concerns connected trade. Its commercialized curate is acceptable to sojourn Washington arsenic soon arsenic adjacent week to question tariff exemptions, home media person said.

Japanese companies are peculiarly exposed to commercialized duties arsenic galore person concentrated for decades connected overseas sales, peculiarly to the United States, to antagonistic anemic home request and a shrinking population, Yamaguchi said.

Almost 9 successful 10 Japanese companies expect Trump's policies to wounded business, a Reuters survey showed past month.

Of these, 72% saw his commercialized strategy, including much tariffs, arsenic the astir detrimental factor, portion 26% chose friction betwixt the United States and China, Japan's different large trading partner.