Japan’s SMEs brace for Trump tariffs with confidence, even as the August 1 deadline draws near. President Donald Trump’s threatened 25% tariffs on Japanese imports loom large, but small manufacturers remain calm and determined.
Yuji Miyazaki, president of Mitsuwa Electric, believes his firm will weather this storm. “We provide specialized products for industries that can’t easily switch suppliers,” he said during a tour of the 92-year-old business.
With just 100 employees, Mitsuwa isn’t a household name. Yet like many Japanese SMEs, it dominates its niche. Founded to produce light bulb filaments, Mitsuwa now manufactures ultra-precise coils, rods, and components. Its products are used in car lights, X-ray machines, and printers.
Notably, in 2022, Mitsuwa earned a Guinness World Record for the smallest commercial metal coil—thinner than a human hair.
Japan’s SMEs brace for Trump tariffs with confidence, thanks in part to global customer bases. Mitsuwa supplies companies across Asia, Europe, and North America, including major firms like Toshiba and Koito Manufacturing.
Although the U.S. tariffs have so far had limited impact, Miyazaki noted one automotive client requested a price reduction. “All we can do is adapt to changes,” he said.
Meanwhile, Prime Minister Shigeru Ishiba continues efforts to avoid full tariff implementation. He has sent chief negotiator Ryosei Akazawa to Washington seven times since April. U.S. Treasury Secretary Scott Bessent was scheduled to meet Ishiba and Akazawa in Tokyo on Friday.
However, Ishiba’s demand for full tariff elimination faces criticism. Some fear this all-or-nothing approach could backfire. As of May and June, Japan’s auto exports to the U.S. fell by around 25%.
These developments have hurt Ishiba’s approval ratings. With the upper house election approaching, his position remains uncertain.
Japanese businesses, however, are more concerned with Trump’s unpredictability than domestic politics. The government-backed JETRO has received over 2,000 tariff-related inquiries from SMEs this year alone.
Miyazaki admits he worries about possible 200% tariffs on pharmaceuticals or medical devices. Yet Mitsuwa’s diversified product line and global client base provide insulation.
That approach is exactly what other firms should adopt, according to SME expert Zenkai Inoue. “I recommend a ‘tricycle strategy’—at least three customers in different regions,” he explained.
He added that firms should first secure financial backing, then focus on expanding into new markets. Diversification, he argued, is essential for surviving unpredictable trade policy shifts.
Japan’s SMEs brace for Trump tariffs with confidence, but experts warn that some still lag behind. Inoue said companies slow to adapt risk repeating past mistakes, like over-reliance on China before sudden policy shifts.
Ultimately, Japan’s SME sector—comprising 99.7% of the nation’s businesses—remains cautious but composed. With strong specialization, global reach, and strategic agility, firms like Mitsuwa Electric are proving they can weather yet another global storm.
