BoJ’s Ueda: US tariffs pose short-term inflation risk, long-term growth uncertainty

BoJ Governor Kazuo Ueda said today that the ramifications of US tariff policy remain “highly uncertain” and could significantly affect global trade.

Speaking to Japan’s parliament, Ueda emphasized that the ultimate impact would depend on the “range and scale” of the tariffs being implemented. He also noted that beyond trade flows, a key concern lies in “how the tariffs could affect the sentiment and spending of households and companies.”

Ueda further highlighted that while US inflation may rise in the short term due to higher import costs, the longer-term effect is less predictable. He suggested that elevated tariffs could eventually weigh on US economic growth, which in turn might dampen inflationary pressures over time.