Uniqlo Stays Confident Amid Trump Tariffs: 'They Probably Won't Last'

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The Donald Trump administration's tariffs are pushing Japanese manufacturers with Southeast Asian production hubs to reassess their strategies for the American market. Some companies are exploring partnerships or frameworks with other firms to sidestep tariff barriers. Fast Retailing, the operator of the Uniqlo clothing chain, is taking a more confident stance, arguing that Trump's tariff policy has its limits. This highlights the divergence in how Japanese companies are responding.

'Adapt Accordingly'

At a financial results briefing on April 10 for the first half of fiscal 2025 (ending August), Fast Retailing Chairman and President Tadashi Yanai shared his outlook. "Given the current international climate, the [Trump] tariffs are unrealistic," he said. "They probably won't last."

Uniqlo currently operates around 70 stores in the United States. Its North American business reported strong performance in the first half of fiscal 2025. Sales and profits in the US and Canada rose about 25% year-on-year.

During Trump's first term, the company responded to steep tariffs on Chinese imports by shifting production to other Southeast Asian countries. However, the latest tariffs now also target those countries, including Cambodia, Vietnam, and Thailand.

Fast Retailing expects a negative impact of about 2–3% on its group operating profit in the second half of fiscal 2025. Still, Yanai remained optimistic. "We can shift production sites as needed," he said. "Even if the global production system becomes fragmented, we will adapt accordingly."

*Tadashi Yanai, Chairman and CEO of Fast Retailing, on August 1, 2024.*

Companies Reevaluate Strategy

Tamagawa Seiki, a sensor manufacturer for electric vehicles based in Iida, Nagano Prefecture, completed a new plant in Vietnam in March 2025. The company had planned to begin production in July and export to the US. But with Vietnam now subject to high tariffs, it is "reviewing its next steps."

Chemical company Asahi Kasei is exploring more creative solutions. At a medium-term business strategy briefing on April 10, President Koshiro Kudo proposed a "product swap" system with partner companies.

Under this plan, a US-based partner would supply goods to Asahi Kasei's American customers. In return, Asahi Kasei would ship products from its Asian facilities to that partner's customers in Asia. The arrangement would allow both sides to avoid tariff barriers.

Uncertain Trade Future

During Trump's first term, many global firms responded to tariffs on China by shifting production to Southeast Asia and exporting to the US via indirect routes. But those neighboring countries are now subject to new tariffs as well. Companies are once again being forced to rethink their supply chains.

Kazuma Maeda, senior economist at the Dai-ichi Life Research Institute, observed that "the structure of free trade may be undergoing a major shift." At the same time, he noted the uncertainty ahead. "There's no clear picture of what the landscape will look like four years from now — after Trump leaves office. It's extremely difficult for companies to make long-term investment decisions."

Authors: Suguru Kojima, Gen Koganezaki, The Sankei Shimbun

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