Photo/Illutration A truck loaded with new truck cabs assembled in Mexico crosses the border bridge into the United States from Mexicali, Mexico, on Feb. 3. (AP Photo/Fernando Llano)

Business executives said they will continue keeping a close watch on what U.S. President Donald Trump does next about tariffs, even after his announcement that he would wait a month to impose them on Canadian and Mexican imports.

Many Japanese automakers and auto parts companies have production bases in those two nations so any measure affecting imports from there would be of grave concern.

Mazda Motor Corp. exports cars from its Mexican plant to the United States.

“We will closely observe what takes place without making any prejudgments because it appears likely the three nations will continue with negotiations until the very last minute,” said Masahiro Moro, Mazda president, who attended an event in Tokyo on Feb. 4. 

He added that preparations would be made after placing all options on the table.

Another company with a production base in Mexico is Ibiden Co., which produces electronic parts for cars.

“While it was temporarily delayed, if (tariffs) are imposed, there will be an effect,” said Yasuhito Hirose, a division manager in the company’s Strategic Corporate Planning Operation. “We will think about our response while observing the actions of other companies.”

Mitsubishi Electric Corp. also produces electrical equipment in Mexico to be installed in cars bound for the U.S. market.

Kuniaki Masuda, the chief financial officer, said, “There will be a need to closely observe how the competition environment in the U.S. market will change.”

Some executives were putting a positive spin on Trump’s decision to delay implementing tariffs.

The trading company Mitsui & Co. is involved in steelmaking operations in Mexico and Canada.

Tetsuya Shigeta, the company’s CFO, said he was honestly surprised by the last-minute delay, but added, “We were able to confirm his stance of engaging in give-and-take discussions.”

But while tariffs may have been delayed for Canada and Mexico, Trump is proceeding with higher tariffs for Chinese imports. Beijing is also showing signs of taking retaliatory measures.

Mitsubishi Heavy Industries Ltd. CFO Hisato Kozawa said on Feb. 4, “There will be no positive effect to world trade if the two nations take retaliatory steps against each other.”

(This article was written by Akihiro Nishiyama and Go Takahashi.)

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