Almost nine out of 10 Japanese companies expect U.S. President Donald Trump’s policies to negatively affect business, a Reuters survey showed on Thursday, the clearest sign yet of mounting worry in the United States’ top foreign direct investor.

Why it matters

The results of the survey show how the prospect of higher tariffs and increased trade friction between the United States and China has clouded the outlook for companies in the world’s fourth-largest economy. Japan, a firm U.S. ally, is also deeply reliant on China as both a manufacturing base and a key market for its machinery and other exports.