Japan must be ready for Trump tariffs, says top Tokyo adviser

TOKYO - Japan needs to prepare for the tariffs US President-elect Donald Trump has pledged against China, Canada and Mexico, and adjust supply chains to reduce collateral damage on Japan Inc, according to one of the nation's top security officials.

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Mr Akihisa Nagashima, national security adviser to Prime Minister Shigeru Ishiba, said in an interview with Bloomberg on Dec 12 that he had frank discussions on tariffs with members of Trump's team during a recent visit to the US.

"I came to the realisation that Japan must be prepared for Trump following through on his plans," said Mr Nagashima.

In November, Trump threatened to impose a 25 per cent tariff on imports from Canada and Mexico, saying he would enforce them if those countries failed to take stronger action against the flow of migrants and fentanyl into the US.

Trump also said he would impose an additional 10 per cent tariff on goods from China.

The tariffs would likely prompt Japan to try to cut its reliance on the three nations, where some Japanese companies operate and Japanese-made parts are sent to make finished products that are shipped to the US, according to Mr Nagashima.