The president of the Japan Hall said tariff companies may require business turnover financing.

Written by Anton Bridge and Miho Uranaka

TOKYO – Bank of Japan may need to provide business turnaround support for companies caused by tariffs imposed by U.S. President Donald Trump’s administration, the head of the country’s bank hall said.

Starting this week, many large Japanese companies, including major exporters and manufacturers, are struggling to cope with U.S. duties on imported steel and aluminum and starting this week on tariffs on imported cars and light trucks.

“We believe tariffs may cause company revenue to worsen,” Junichi Hanzawa, the new chairman of the Japan Banking Association, said in an interview.

“We will have to be sure if this weighs employment and salary and then becomes a burden on the repayment of companies and families,” Hanzawa added.

A Reuters poll in February showed that nearly 90% of Japanese companies believed the Trump administration was harmful to business, with most noting that trade policies, including tariffs, were the most harmful.

Hanze added that in addition to the usual financing, bank clients may also need turnaround support.

Hanze also said that while several major banks pulled out several major banks from the decarbonization framework of the net zero banking alliance, Japanese banks and companies remain committed to decarbonizing.

Japanese signatories including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Norinchukin Bank have withdrawn in the past month after Wall Street banks deviated from the framework.

“We have not seen recent moves linked to changes in the Bank of Japan’s fundamental principles on climate change,” Hanze said.

Hanzawa is also the CEO of MUFG Bank, the MUFG bank division.

“It’s a good framework for sending messages, but with the withdrawal of major banks in the U.S. and Canada, it lost its influence.” Hanze said of the MUFG’s evacuation.

Hanzawa said MUFG has no intention of changing its existing commitments and strategies for carbon neutrality.

This article was generated from the Automation News Agency feed without the text being modified.