News On Japan

Trump’s 24% Tariff Triggers Alarm for Sake Brewers

KOBE, Apr 10 (News On Japan) - Trump’s aggressive new tariffs are shaking Japan’s sake industry, with concern growing among brewers in Kobe, one of the country’s most renowned sake-producing regions.

In Nada, a district in Kobe known as Japan’s top sake hub, American tourists can often be found seeking the delicate flavors of traditional Japanese sake.

An American tourist visiting the area said, "I love sake. Hopefully there won’t be any tariffs, haha."

Major brewers in the region, who have inherited centuries of traditional sake-making techniques, are already adapting to international markets. One company has developed 20 export-specific brands, including sake tailored for American tastes.

"This junmai ginjo is a product created exclusively for the American market," said Saito, head of the overseas business division at Hakutsuru Sake Brewing.

Hakutsuru exports to 59 countries, with the United States—where it established a sales base in 1984—accounting for about 30% of its total exports. With the latest tariff hike, concerns are mounting.

"I expect the new tariffs will lead to a significant cost increase," Saito said. "We now have to consider whether to pass the cost on to prices or to adjust our product lineup to fit the market."

As sake grows in popularity across the U.S., many worry that prices will soon surge.

According to reporter Akari Sakura in New York, "Around 80% of the alcohol served at this bar is Japanese sake or shochu imported from Japan."

Some establishments have already begun reviewing their purchasing strategies to cope with the expected rise in import costs.

The bar’s owner commented, "It would be unfortunate to cut down the sake selection for our customers. We might need to consider offering smaller portions at more affordable prices until things improve."

Japanese sake lovers in New York are concerned that the enjoyment of their favorite drinks may be compromised.

"Everything’s going to get more expensive, so I’ll probably cut back by one drink," said one fan.

Meanwhile, on April 9th, Tokyo’s stock market reflected the impact of the tariffs.

"The Nikkei average has now dropped more than 1,700 yen," reported one journalist as the market slid sharply after 1:01 p.m., when the tariffs took effect.

The tariffs led to a steep fall of over 1,700 yen at one point, continuing a trend of volatile swings driven by retaliatory trade measures.

As global negotiations with the United States over reciprocal tariffs intensify, uncertainty looms over both economic forecasts and the everyday lives of consumers.

Source: YOMIURI

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