By Divya Chowdhury and Rocky Swift
DAVOS, Switzerland (Reuters) – Japanese companies remain bullish about investing in the United States but need to prepare for supply chain shocks that could arise during a Donald Trump presidency, the chief executive of drinks giant Suntory Holdings said. on Wednesday.
Takeshi Niinami, who is also the head of one of Japan's largest business lobbies, said on the sidelines of the World Economic Forum (WEF) Davos meeting that it is important for companies to show that their investments will create jobs in the United States.
A survey last week showed that most Japanese companies operating in the United States are preparing for new tariffs.
“The imposition of tariffs by the Trump administration would create huge, unexpected changes in the supply chain landscape,” Niinami told the Reuters Global Markets Forum.
“Japanese companies have to be agile to respond to any change,” he added.
Japan runs a significant trade surplus with the United States, a sore point for Trump, but that friction could ease as the Asian nation bulks up its military by buying American-made weapons, he said.
Niinami, 65, is one of Japan's most influential executives, serving as chairman of the Keizai Doyukai business lobby and as an economic adviser to former prime ministers.
In 2014, he became the first non-founding family member to lead century-old Suntory, engineering the $16 billion takeover of US spirits maker Beam that year. He will cede the role of president to Nobuhiro Torii, the great-grandson of Suntory's founder, in March while remaining CEO.
Niinami hoped Nippon Steel's $14.9 billion bid for US Steel could be revived after the deal was blocked by then-President Joe Biden earlier this month.
Nippon Steel has sued to overturn Biden's decision. If the Japanese company can make the case that the companies would be stronger together against China and can revive US industry, that could sway the case, Niinami said.
As for his own company, Suntory is reconsidering investments in China due to a lack of positive signs in the market, but is keen to grow in India through partnerships and local manufacturing.
“We want to be somebody in India,” he said.
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(Reporting by Divya Chowdhury in Davos and Rocky Swift in Tokyo; Editing by Kirsten Donovan)