BOJ sees US tariff hit to exports limited for now, warns of gloom ahead
A passerby walks past in front of the Bank of Japan headquarters in Tokyo, Japan, on Jan 23, 2025. (Photo: REUTERS/Issei Kato)
TOKYO: The impact of US tariffs on Japan's exports and output was limited for now, but many companies worried about the risk of weaking global demand ahead, the central bank said on Thursday (Jul 10).
While some areas in Japan saw companies delaying or reviewing capital expenditure plans, others said companies continued to increase spending to streamline operations and cope with labour shortages, according to a summary of the BOJ's quarterly meeting of regional branch managers.
"At present, the impact was limited overall," the summary said on how higher US tariffs were affecting exports and factory output in regional Japan.
"As for the outlook, many regions saw companies voicing concern about slumping demand from rising US sales prices and a slowdown in the global economy," the summary said.
In a separate report, the BOJ maintained its assessment for all nine regions from three months ago to say their economies were recovering moderately.
The summary and report will be among factors the BOJ will scrutinise at its next policy meeting on Jul 30-31, when the board will issue fresh quarterly growth and price forecasts.
