Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
Investing.com-- Bank of Japan Governor Kazuo Ueda warned on Wednesday that new U.S. trade tariffs under President Donald Trump could greatly impact global trade and undermine economic growth.
Ueda also flagged uncertainty over the inflationary impact of Trump’s tariffs, warning that they were likely to push up U.S. inflation in the near-term. But their long-run effect remained uncertain, given that higher tariffs could cool U.S. economic growth and limit price growth, Ueda said before Japan’s parliament.
Ueda’s warning comes just hours before Trump is set to unveil his plans for a sweeping range of trade tariffs, especially against countries with large trade surpluses with the U.S.
Japan is likely to be targeted by Trump.
Comments from U.S. Treasury Secretary Scott Bessent suggested that Trump will impose the highest level of tariffs later in the day, and that targeted countries can bring down the figure by cutting their own tariffs on U.S. goods, or passing measures to appease Washington.
The impact of Trump’s tariffs on the Japanese economy- which is heavily exposed to U.S. trade- is likely to factor into the BOJ’s plans for interest rates this year.
The central bank is widely expected to raise rates further, even as soon as May, as it moves to curb sticky inflation and wean the economy off monetary support.