China tariffs will 'definitely' increase US inflation: Suntory CEO

Brian Sozzi · Executive Editor

Tue, Jan 21, 2025, 4:38 AM

Tariffs are in focus as US President Donald Trump returns to the White House. Suntory Holdings CEO Tak Niinami sits down with Yahoo Finance Executive Editor Brian Sozzi at the 2025 World Economic Forum in Davos, Switzerland, to discuss how the Japanese multinational alcohol company is preparing for Trump's expected tariffs.

The president has threatened a 10% baseline tariff on all imports to the United States, with more significant tariffs for foreign adversaries, including China. Tariffs were not part of Trump's day-one actions, but the president made clear it would be an early priority of his second administration.

Niinami says, "It's a kind of relief that President Trump didn't give the hardship to China because once that happens, [a 60% tariff], that will increase definitely inflation in the United States."

The CEO explains that the US is "one of the most important markets," not only for Suntory but also for the global economy at large. "The US is a big locomotive to the world economy. Only one economy, which can lead to [a] better [global] economy." Niinami adds that once Trump does take action on tariffs, Suntory must "respond quickly to the policies."