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The Japanese owner of Jim Beam and Maker’s Mark bourbon whiskies expects that some global consumers will boycott its American brands as part of a backlash to Donald Trump’s protectionist trade policies.
Takeshi Niinami, chief executive of drinks giant Suntory Holdings, said it was planning on the assumption that its US brands would be “less accepted” because of the threat of tariffs and the “emotion” of consumers in major markets, including Europe.
“We laid out the strategic and budget plan for 2025 expecting that American products, including American whiskey, will be less accepted by those countries outside of the US because of first, tariffs and, second, emotion,” he told the Financial Times in an interview.
“Our plan is less export from the US to other countries like [in] Europe, Mexico and Canada.” He added: “We have to be more focused on the US to sell American whiskey.”
The comments highlight how major corporations are adjusting to the combative trade policies of the Trump administration, as they seek ways to create stability and navigate an unpredictable White House.
Trump over the weekend upended decades of US trade policy with an executive order for across-the-board 25 per cent tariffs on goods from Canada and Mexico, and an additional 10 per cent tariff on those from China. He followed this up by saying he would “absolutely” hit Europe with trade restrictions.
The US president later granted a 30-day reprieve to Canada and Mexico, averting a looming trade war — for now. Niinami said he was “relieved that’s suspended for a month”, while also warning of the “huge impact if our products are not sold in the stores in Canada”.
Trump’s threats have prompted a wave of economic nationalism in Canada with political leaders pushing the population to buy locally produced goods over American-made ones. Some Canadian states have ordered American alcohol to be taken off the shelves in shops.
Niinami said that if the informal boycotts worsened, then Suntory has “another plan” which includes options such as increasing stocks and offering other products to consumers from its portfolio.
The chief executive said he was also “so concerned about Mexico”, where Suntory owns tequila producers. He said tequila was Suntory’s fastest-growing spirit category. “We want to keep selling tequila. Only two spirits are going up in sales, American whiskey and tequila,” he said.
The drinks boss said he believed cooler heads would prevail. “If tariffs go to every corner of the world, then the US will be hurt the most,” he said. “Trump will be more realistic about the national interest of the US, which is [to curb] inflation.”
Japan’s Prime Minister Shigeru Ishiba travels to the US on Thursday for a three-day visit that includes a meeting with Trump.
He will make the case to the US president that Japanese companies and investments create jobs in America, despite the country having a trade surplus with the US. Ishiba is expected to pledge to buy more US gas to appease Trump, according to Japanese government officials.
Niinami also said that he expected the Japanese government alongside businesses to propose an investment initiative to upgrade US utility grid infrastructure using Japanese technology
Niinami, who heads Japan’s top business executives lobby group, added that there was a “slight chance” that Nippon Steel’s acquisition of US Steel would be approved by the Trump administration.