Trade Friction Sparks Innovation: Japanese Auto Supplier Kyowa's Struggle Amid U.S. Tariffs

Kyowa Industrial, a Japanese auto parts manufacturer helmed by Hiroko Suzuki, is facing the brunt of sweeping U.S. tariffs imposed by the Trump administration. Initially crafted to hit the automotive sector, these tariffs have been declared a "national crisis" by Prime Minister Shigeru Ishiba, as they challenge Japan, the world's fourth-largest economy.

The tariffs have particularly hit smaller suppliers like Kyowa Industrial, which have traditionally relied on the auto industry. While Japan no longer dominates in global electronics, the auto industry remains crucial, and the shift towards electric vehicles is compelling companies like Kyowa to diversify into areas such as medical devices. Despite these efforts, they find these new ventures also under tariff scrutiny.

As Japanese companies grapple with this challenge, Suzuki is working with potential distributors in Asia to reduce dependency on the U.S. market. Kyowa is emblematic of an industry at a crossroads, seeking resilience amid global trade entanglements. The future of Japan's automotive sector may hinge on its ability to innovate and withstand external pressures.

(With inputs from agencies.)