Trump's tariffs lead Japan to slash economic forecast

BoJ expects growth of 0.5% in fiscal year

- RIVER AKIRA DAVIS

The growing list of major economies warning of weaker growth because of United States tariffs has a new member.

The Bank of Japan said yesterday that it expects the Japanese economy to grow 0.5% in the fiscal year that started April 1. That is a sharp downgrade from the 1.1% the central bank had forecast in January.

Explaining the change, the BoJ cited “trade and other policies” leading to a slowdown in overseas economies and a decline in domestic corporate profits. The outlook was released alongside an announcement that the central bank would keep interest rates unchanged at 0.5%.

US President Donald Trump's tariff threats are weighing on economic prospects around the world. In April, the International Monetary Fund lowered its 2025 outlook for all Group of 7 nations, including Germany and Japan, the world's thirdand fourth-largest economies, largely because of US tariffs.