Questionnaire Survey on the Choice of Invoice Currency by Japanese Overseas Subsidiaries

In April 2025, the second Trump administration imposed a uniform 10% reciprocal tariff and country-specific additional tariffs worldwide, culminating in a final 15% tariff on Japan. After the U.S. Supreme Court ruled the reciprocal tariffs unconstitutional on February 21, 2026, President Trump imposed a 10% substitute tariff under Section 122 of the 1974 Trade Act. Given this disruption to the global free trade system, how are Japanese overseas subsidiaries managing exchange rate fluctuations and tariff increases? Have they changed the currency used for trade invoicing? Are they able to fully pass on increased costs and exchange rate risk to local sales and export prices?

This survey was carried out as the fifth in a series conducted in fiscal years 2010, 2014, 2018, and 2022, focusing on Japanese overseas subsidiaries. How are these subsidiaries managing exchange rate risk, rising U.S. tariffs, escalating global geopolitical risks, and the significant depreciation of the yen? The purpose of this survey was to conduct a details directly from Japanese overseas subsidiaries, which were central to global production and sales networks, on changes in their exchange rate risk management, pricing strategies, and trade invoice currency choices, on key corporate strategies directly, including exchange rate risk management, invoice currency choices, and export pricing.