Insignia Consultants | BOJ's Ueda warns of hit to Japan economy from Trump tariffs
BOJ's Ueda warns of hit to Japan economy from Trump tariffs
TOKYO, April 4 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Friday the central bank will scrutinise the impact of U.S. tariffs on the country's economy when setting monetary policy, warning the higher levies will likely weigh on global and domestic economic growth.
Global stock prices tumbled on Thursday after U.S. President Donald Trump's announcement of sweeping tariffs ignited fears of an all-out trade war and a global economic recession.
Aside from the direct impact on global trade, Trump's tariffs, set at 24% for Japanese goods, could affect corporate sentiment and market moves by heightening uncertainty over the economic outlook, Ueda said.
"Through such channels, the tariffs are likely to exert downward pressure on global and Japanese economies," he told parliament.
The impact on Japan's inflation was harder to discern as the tariffs could push down prices by cooling growth, but may work to accelerate inflation by disrupting supply chains, he said.
