Global markets can carry on without the US, Suntory Holdings Ltd. Chairman and CEO warned in a Bloomberg TV interview, saying President Donald Trump’s threatened tariffs are killing investor appetite for U.S. ventures and could deepen a downturn if the economy slides into recession.
Trump has proposed a 24% levy on Japanese exports. Although the tariff is suspended for three months, Tokyo is racing to negotiate with the administration to avert its imposition.
Asked whether the tariffs would affect Suntory’s long-term U.S. investments, Takeshi Niinami said, “If this continues, it is not going to be very attractive.” He added, “The U.S. is still a key country, but we have to have a broader portfolio of investment,” citing opportunities in India and Indonesia.
Niinami also warned that consumer confidence has been “waning tremendously,” noting that shoppers are choosing economy products over premium brands. “Consumers nowadays are not spending willingly, so they opt for economy items instead of premium products,” he said.
Pressed on whether the threat of tariffs signals an end to rule-based globalization, Niinami dismissed the notion and predicted that Japan, China and India would champion free trade in the Asia-Pacific region. Asked if the rest of the world would carry the global economy without the world’s largest economy, he replied firmly, “I think so.” He added, “This time, a lot of countries gotta understand that the U.S. is not a country that supports free trade and has denounced it… Japan should be the flagbearer of free trade, and we will.”
Niinami also urged Tokyo to deepen trade ties with neighboring China, saying routine commerce—excluding products linked to economic security such as semiconductors—should be encouraged. “China is our neighbor; the world is intertwined, and we must not forget that fact,” he said.
Suntory, maker of Yamazaki whisky and Jim Beam bourbon, reported a strong fiscal 2024, with revenue rising 4.3% to ¥3.417 trillion (US$24.1 billion). Comparable spirits revenue increased year over year, both including and excluding excise taxes. Despite consumer and demographic headwinds, the group delivered growth in ready-to-drink beverages and Japanese whisky and gained market share in American whiskey.
However, its 2025 outlook has been clouded by the looming tariffs. Before the threat of duties, Suntory had projected 4.2% growth, targeting ¥3.560 trillion in revenue.
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