Business Business Japanese Bankers Association Chairperson Junichi Hanzawa (President & CEO, MUFG Bank) attends an interview in Tokyo, Japan March 25, 2025. REUTERS/Miho Uranaka TOKYO : Japanese banks may need to offer business turnaround support to companies hit by tariffs imposed by the administration of U.S. President Donald Trump, the head of the country's banking lobby said. Many large Japanese firms, including major exporters and manufacturers, are grappling with U.S. duties on imports of steel and aluminium and a 25 per cent tariff on imported cars and light trucks starting this week. "We think tariffs could lead to a deterioration in corporate earnings," the new chair of the Japan Banks Association, Junichi Hanzawa, told Reuters in an interview. "We will have to ascertain whether this weighs on employment and salaries and then become a burden for companies' and households' repayments," Hanzawa added. Almost 90 per cent of Japanese companies see the Trump administration as bad for business, with the majority of these pointing to trade policy – including tariffs – as the most detrimental factor, a Reuters poll showed in February. On top of their usual financing, bank customers may also need turnaround support, Hanzawa added. Hanzawa also said that Japan’s banks and companies remained committed to decarbonisation efforts despite the withdrawal of several major banks from the Net Zero Banking Alliance decarbonisation framework. Following the departure of Wall Street banks from the framework, Japanese signatories including Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Norinchukin Bank have pulled out in the past month. "We don't see recent moves as connected to a change in Japanese banks' fundamental principles about responding to climate change," Hanzawa said. Hanzawa is also chief executive of MUFG's banking arm, MUFG Bank. "It was a very good framework for sending out information, but with the withdrawal of major U.S. and Canadian banks it has lost influence," Hanzawa said of MUFG's withdrawal. MUFG has no intention of altering its existing commitments and strategy on carbon neutrality, Hanzawa said. Get our pick of top stories and thought-provoking articles in your inbox Stay updated with notifications for breaking news and our best stories Get WhatsApp alerts Join our channel for the top reads for the day on your preferred chat app Copyright© Mediacorp 2025. Mediacorp Pte Ltd. All rights reserved. We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be. To continue, upgrade to a supported browser or, for the finest experience, download the mobile app. Upgraded but still having issues? Contact us