U.S. President Donald Trump’s tariff campaign is likely to worsen inflation and raise the bar for Japanese companies to invest in the U.S., defying the president’s aim to lure investment and revive American manufacturing, according to the chair of the Japan External Trade Organization.
Higher tariffs will raise the cost of doing business in the U.S. with more expensive materials and products, while the president’s crackdown on immigrants is also likely to worsen a labor shortage and boost labor costs, according to Norihiko Ishiguro, JETRO’s chair.
"The cost of materials and other things will increase significantly which won’t make the business environment good,” Ishiguro said in an interview with Bloomberg on Tuesday. Referring to Trump’s crackdown on foreign workers, he added "in our interviews with companies based in the U.S., we found some were worried that some of their workers might disappear.”
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