By Anton Bridge and Miho Uranaka
Tokyo (Reuters) – Japanese banks may have to provide businesses with companies affected by prices imposed by the administration of US President Donald Trump, said the country’s banking hall.
Many large Japanese companies, including the main exporters and manufacturers, are struggling with American rights to imports of steel and aluminum and a 25% price on imported cars and light trucks from this week.
“We believe that the prices could result in deterioration in business profits,” a new president of the Japan Banks Association, Junichi Hanzawa told Reuters.
“We will have to check if it weighs on employment and wages, then become a burden for reimbursements of companies and households,” added Hanzawa.
Almost 90% of Japanese companies consider that the Trump administration is bad for business, the majority of these elements pointed out on commercial policy – including prices – as the most prejudicial factor, according to a reuters poll in February.
In addition to their usual funding, banking customers may also need recovery media, added Hanzawa.
Hanzawa also said that Japanese banks and companies remained attached to decarbonization efforts despite the withdrawal of several large banks from the decarbonization framework of the zero net banking alliance.
After the departure of the banks of Wall Street of the executive, the Japanese signatories, in particular the financial group Mitsubishi UFJ, the financial group Sumitomo Mitsui and the Banque Norinchukin withdrew in last month.
“We do not consider recent movements linked to a change in the fundamental principles of Japanese banks on the response to climate change,” said Hanzawa.
Hanzawa is also Managing Director of the MUFG Bank Branch, MUFG BANK.
“It was a very good manager to send information, but with the withdrawal of the main American and Canadian banks, she lost the influence,” said Hanzawa about the withdrawal of MUFG.
The MUFG does not intend to modify its existing commitments and strategy on carbon neutrality, said Hanzawa.
(Report by Anton Bridge and Miho Uranaka; edition by Kate Mayberry)