TOKYO, Jan 31 (Reuters) - The world's second-largest car

parts maker is not unduly worried about U.S. President Donald

Trump's looming tariffs on Mexico and Canada, and may seek to

manage increased costs by raising prices, a top executive at

Japan's Denso ( DNZOF ) said on Friday.

Yasushi Matsui, the Toyota Motor ( TM ) supplier's

financial officer, provided insight into how some of Japan's

biggest corporations aim to navigate potential higher import

taxes in the U.S.

His comments also highlighted the possible impact of Trump's

trade policies on global automakers and consumers by disrupting

the supply chain.

Trump has set a Saturday deadline to impose 25% tariffs on

imports from Mexico and Canada to pressure the two largest U.S.

trading partners into taking action to prevent illegal migrants

and shipments of fentanyl from crossing their borders into the

U.S.

"Rather than panicking and making a fuss, we want to proceed

with ... sound price transfers where possible," Matsui said at a

financial results briefing.

"We want to discuss proper price transfers rather than just

having the supply chain absorb everything," he added, indicating

that he was hopeful about holding price negotiations with

customers if tariffs were raised.

Denso ( DNZOF ) reported a near sixfold jump in third-quarter

operating profit on Friday. Its performance is an indicator for

Toyota ( TM ), due to report earnings on Wednesday, as it reflects

broader trends in the global automotive supply chain.

Another Toyota ( TM ) supplier, car interiors maker Toyota Boshoku ( TDBOF )

, is closely watching the situation, an executive said.

"We'll firmly have our antennas up since tariffs could

affect customer behaviour," chief financial officer Shunichi

Iwamori said at a separate results briefing, indicating a

willingness to discuss passing on higher prices.

Denso ( DNZOF ) and Toyota Boshoku ( TDBOF ), among other suppliers, prefer

making goods near their customers, in the North American market.

They say that could provide some cover from tariffs.

Denso's ( DNZOF ) Matsui said the company would consider the overall

impact of Trump's economic policy package and not just import

taxes.

Higher tariffs on Mexico would likely weaken the country's

peso currency, he said.

"A weaker peso would actually be favourable for profits,"

Matsui said.

"Additionally, since President Trump is expected to

implement corporate tax cuts, there should be positive effects

from that as well."