On Wednesday, Kazuo Ueda, the head of the Bank of Japan (BOJ), expressed his apprehension about the tariffs recently imposed by U.S. President Donald Trump. He highlighted that these tariffs are contributing to increased uncertainty surrounding the economic landscape and price stability in Japan. During a session with a parliamentary committee, Ueda stated that the BOJ intends to closely observe how these duties affect domestic industries and consumer spending. He also mentioned that the central bank would strive to make a suitable decision regarding any additional increases to their key policy interest rate aimed at tackling inflationary pressures.

President Trump has announced the implementation of reciprocal tariffs, which took effect on the same day, targeting approximately 60 countries and regions that he argues must adjust their trade balances. Japan is facing a significant 24 percent duty as part of these measures. The Bank of Japan, which has been working to normalize its monetary policy following years of unconventional easing strategies, is scheduled to conduct a two-day meeting starting April 30. Earlier this year, in January, the bank increased its policy interest rate to 0.5 percent—the highest it has been in 17 years, up from around 0.25 percent.