High US tariffs will impact Japan’s economy

Bank of Japan Governor Kazuo Ueda said on the 17th that the US tariff policy will impact Japan’s economy and may have a negative impact on the international financial capital market.

Ueda said at the meeting of the Japanese Senate Finance and Financial Committee on the impact of the US tariff policy on the Japanese economy that the US tariff policy not only directly affects trade activities, but also leads to increased uncertainty, impacts the confidence of companies and households, and may also have a negative impact on the international financial capital market. He believes that the US tariff policy will put downward pressure on the Japanese economy.

Ueda also said that the US tariff policy may have a two-way impact on Japanese prices, either rising or falling, and there is a high risk of hastily judging its direction at this stage. He said that it is now necessary to judge the impact of tariffs on the economic and price prospects without preconceptions, and to prudently decide on appropriate financial policies on this basis.