Key Facts
• July 31, 2025: Trump announces revised reciprocal tariffs at the White House.
• August 7, 2025: 15% tariff on Japanese exports to the U.S. takes effect.
• Tariff rate lower than the initially proposed 25% but still raises costs significantly.
• Itochu Corporation reports a ¥1 billion profit reduction in Q2 2025 due to tariffs.
• Canon estimates tariff-related costs to reach ¥150–160 billion in 2025.
• Canon plans selective product price increases to offset tariff burdens.
• U.S. sales account for nearly 30% of Canon’s total revenue.
• Itochu’s Southeast Asia-U.S. export operations, including processed fruits, are impacted.
• Companies face challenges in implementing uniform price hikes for all products.
Summary
The U.S. government, under President Trump, has implemented a 15% reciprocal tariff on Japanese exports starting August 7, 2025. While lower than the initially proposed 25%, the tariff poses significant cost challenges for Japanese exporters. Itochu Corporation reported a ¥1 billion profit reduction in Q2 2025, while Canon anticipates additional costs of ¥150–160 billion this year. Both companies are exploring price adjustments to mitigate the impact, with Canon focusing on selective product-specific increases. The tariff affects a wide range of exports, including processed goods and electronics, and is expected to drive up U.S. retail prices. Japanese companies are navigating these challenges while assessing the feasibility of further price hikes.
