Japanese companies express concern over fiscal discipline under Prime Minister Takaichi

A Reuters poll shows two-thirds of Japanese firms worry about fiscal discipline as PM Takaichi plans tax cuts. Concerns over China tensions have notably eased.

A poll conducted by Reuters and Nikkei Research has found that approximately two-thirds of Japanese companies/firms are concerned about the fiscal discipline of the Japanese government JPJP following a series of major policy announcements. The survey results, released on February 18, 2026, indicate that corporate sentiment is wavering after Prime Minister Sanae Takaichi revealed plans to temporarily suspend the 8% sales tax on food for a period of two years and significantly increase public investment to stimulate economic growth.
Sanae Takaichi, Japan’s prime minister, speaks during a press conference at the prime minister’s office in Tokyo, Japan, on Wednesday, Feb. 18, 2026. Kiyoshi Ota/Pool via REUTERS
Sanae Takaichi, Japan’s prime minister, speaks during a press conference at the prime minister’s office in Tokyo, Japan, on Wednesday, Feb. 18, 2026. Kiyoshi Ota/Pool via REUTERS
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