Nippon Steel Fears Potential Damage From U.S. Tariffs

Nippon Steel Corp. said any move by Washington to impose tariffs on Japanese cars and auto parts will hurt its earnings, but expects less of a direct impact from proposed tariffs on U.S. imports from Mexico.

Aiming to curb a surge in illegal immigration, U.S. President Donald Trump said last week he would target all goods coming from Mexico with a 5 percent tariff from Monday, increasing to 25 percent, unless Mexico took immediate action.

The move spooked global markets worried about a new front in the U.S. trade war.

“The new tariffs are likely to have little impact on our business as steel which we export to Mexico is processed in our local joint venture and sold to automakers in the country,” Nippon Steel Executive Vice President Katsuhiro Miyamoto told Reuters in an interview Friday.