FX.co ★ Japanese Yen Falls as Trump Imposes 25% Tariff

The Japanese yen declined beyond 146 against the US dollar on Tuesday, marking a two-week low following US President Donald Trump's declaration of a 25% tariff on Japanese imports, effective from August 1. Although this rate is lower than the previously threatened 35% levy, it is still considerably higher than the standard 10% tariff applied to most other nations, thereby increasing pressure on Tokyo to secure a trade agreement with Washington. Japanese Prime Minister Shigeru Ishiba noted that Japan will persist in negotiations with the US to achieve a mutually advantageous deal. Domestically, Japan's current account surplus for May surpassed forecasts, providing some positive sentiment. However, earlier reports indicating weaker-than-expected wage growth have reduced the likelihood of further interest rate increases by the Bank of Japan, exerting additional downward pressure on the yen.