From April 2025, the tone of international trade has taken a dramatic turn as Suntory Holdings Ltd. Chairman and CEO Takeshi Niinami sounded a cautionary note during a Bloomberg TV interview.
Amid threats of hefty U.S. tariffs on Japanese goods, Niinami argued that the global economy could carry on—perhaps even thrive—without the leadership of the United States.
U.S. President Donald Trump’s proposed 24% levy on Japanese exports, though currently suspended for three months, has already sent ripples through the investment landscape. Tokyo is scrambling to negotiate a resolution, but the uncertainty has cast a shadow over long-term U.S. investment prospects, according to Niinami.
“If this continues, it is not going to be very attractive,” he warned, pointing to shrinking investor appetite for ventures in the U.S. “The U.S. is still a key country, but we have to have a broader portfolio of investment.”
Shifting Global Priorities
Niinami emphasized that Japan, China, and India are poised to become new leaders in promoting free trade within the Asia-Pacific region. He dismissed fears that tariff threats signaled the death of rule-based globalization and insisted the world must adapt to a shifting paradigm.
“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,” he stated.
Suntory’s CEO also urged stronger economic ties with China, stressing the importance of routine commerce while excluding sensitive sectors such as semiconductors. “China is our neighbor; the world is intertwined, and we must not forget that fact,” he added.
Consumer Confidence Falters
Beyond geopolitics, Niinami also addressed the changing face of global consumer behavior. Economic uncertainty and inflationary pressures have led to a stark shift in purchasing trends.
“Consumers nowadays are not spending willingly, so they opt for economy items instead of premium products,” Niinami observed, highlighting declining confidence in multiple markets.
Financial Performance and the Road Ahead
Despite turbulent headwinds, Suntory posted solid fiscal 2024 results, with revenue climbing 4.3% to ¥3.417 trillion (USD 24.1 billion / EUR 22.6 billion). The company’s spirits segment—including its flagship Yamazaki whisky and American bourbon brand Jim Beam—continued to gain momentum, with ready-to-drink beverages and Japanese whiskies seeing particular growth.
However, looking ahead to fiscal 2025, the company’s previously projected revenue target of ¥3.560 trillion (approx. USD 25.1 billion / EUR 23.5 billion) is now under pressure due to the uncertain tariff outlook.
Conclusion: A Call for Strategic Diversification
Niinami’s message is clear: the global economy is at a crossroads, and companies must realign their strategies in a world where the U.S. may no longer be the driving force behind globalization. With Japan positioning itself as a beacon of free trade and Suntory eyeing expansion in markets like India and Indonesia, the future of international commerce is likely to pivot more decisively towards the Asia-Pacific.
About Suntory Holdings Ltd.:
Founded in 1899, Suntory Holdings is one of Japan’s oldest and most iconic beverage companies. Known globally for its award-winning Yamazaki and Hibiki whiskies, the company also owns prominent international brands like Jim Beam and Maker’s Mark. With operations spanning across the globe and a strong commitment to sustainability, Suntory continues to lead innovation in the spirits, beer, and non-alcoholic beverage markets.
Source: Vino-Joy