FX.co ★ Japanese Yen Rises as U.S. Tariff Plans Stoke Trade War Fears

The Japanese yen experienced a notable appreciation, reaching approximately 147.94 on Thursday following the announcement by U.S. President Trump regarding tariffs. This announcement has heightened fears of a potential global trade war. On Wednesday, Trump revealed plans to implement a minimum tariff of 10% on all exports to the U.S., accompanied by additional duties on approximately 60 countries, including significantly increased rates for some of America's major trading partners. Concurrently, Bank of Japan Governor Kazuo Ueda expressed concerns that the newly proposed U.S. tariffs could have a serious impact on global trade and economic growth. He intends to raise these issues at the upcoming G20 meeting. Earlier in the week, data indicated a decline in business sentiment in Japan during the first quarter of 2025, underscoring anxiety over the prospective effects of U.S. tariffs on Japan’s export-reliant economy. Although the central bank is anticipated to increase interest rates later in the year, uncertainty regarding global trade dynamics and domestic economic conditions continues to affect the economic outlook.