DP World Diversifies into Japan Amid Trump Tariffs

DP World, a Dubai-based port operator, is targeting Japan as US tariffs spur diversification. The company sees Japanese companies seeking to move from tariff-hobbled industrial economies to faster-growing developing economies in the Global South. DP World is aiming to expand its Japan business and capitalize on this trend.

Title: DP World Targets Japan Amid US Tariffs, Sees Opportunity in Global South

July 02, 2025

DP World, a Dubai-based port operator, is pivoting its strategy to capitalize on Japan's growing interest in the Global South, driven by the impact of US tariffs. The company sees Japanese companies seeking to diversify their operations away from tariff-hobbled industrial economies and into faster-growing developing markets.

DP World has recently signed a memorandum of understanding (MoU) with Itochu Corporation, one of Japan’s largest trading companies, to expand logistics, supply chain infrastructure, and distribution capabilities in sub-Saharan Africa. This collaboration aims to enhance connectivity and market access across Africa, supporting Japanese businesses looking to establish or grow their presence on the continent [1].

The agreement was signed during the Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan. Beat Simon, Group Chief Operating Officer, Logistics at DP World, and senior executives from Itochu Corporation participated in the signing [1].

Under the MoU, both companies will explore opportunities in fleet and logistics operations, supply chain optimization, and the distribution of commodities and food products. DP World operates in 48 countries across Africa with a wide network of ports, terminals, and logistics assets from warehouses to trucks. The company has invested over $3 billion in infrastructure development, with a further $3 billion planned over the next 3 to 5 years [1].

Itochu Corporation, headquartered in Tokyo, has decades of experience in commodities, wholesale trade, and consumer goods across Africa. Its diversified portfolio spans textiles, machinery, energy, chemicals, foods, and general consumer goods, providing a strong foundation to support Japanese businesses expanding into Africa [1].

Simon stated, “Africa represents one of the most dynamic growth frontiers for global trade. This collaboration with Itochu reflects a shared vision to unlock value by combining our infrastructure and logistics expertise with Itochu’s commercial experience to create deeper connections between Africa and Japan” [1].

Shinya Ishizuka, CEO of Africa Bloc, Itochu Corporation, added, “We hope that this collaboration will not only lead to further projects between the two parties but also serve as a bridge between Japanese companies seeking to expand into Africa and the African market” [1].

This strategic move by DP World comes amidst broader changes in the global trade landscape. Japan Post, one of the major postal services affected, has announced it will suspend some postal items to the US from Wednesday, July 3, 2025, due to the termination of the de minimis exemption. The de minimis exemption, which has allowed millions of low-value parcels to enter the US duty-free, will end on August 29, 2025 [2].

The de minimis exemption's termination is expected to have broader implications for the global postal industry and the e-commerce sector. As the deadline approaches, postal services and online sellers are scrambling to adapt to the new regulations and find viable solutions to comply with US rules [2].

The termination of the de minimis exemption, along with other geopolitical factors, is driving Japanese companies to seek opportunities in the Global South. DP World's expansion into Africa, facilitated by its collaboration with Itochu, is a strategic response to these changes.

References:

[1] https://www.tradingview.com/news/reuters.com,2025-08-25:newsml_Zaw9YbKT1:0-sng-dp-world-itochu-to-strengthen-logistics-trade-in-sub-saharan-africa/
[2] https://www.ainvest.com/news/japan-post-suspend-postal-items-wednesday-due-tariffs-termination-de-minimis-treatment-2508/