Bank of Japan warns of possible blow to global trade due to planned new US duties

By Alimat Aliyeva

The Planned New US Tariffs Could Have a Huge Impact on Global Trade, Azernews reports.

The head of the Bank of Japan, Kazuo Ueda, warned on Wednesday that the upcoming U.S. tariffs could significantly disrupt global trade and potentially harm global economic growth. This warning came just hours before President Donald Trump was set to announce retaliatory tariffs.

The new measures are expected to build on existing U.S. tariffs on aluminum and steel imports, as well as additional duties on a wide range of goods from China, according to Reuters.

“The impact of U.S. tariff policies on the global economy is highly uncertain. However, depending on the scope and magnitude of these tariffs, they could have significant consequences for trade activities in many countries,” Ueda told the Japanese parliament.

Although Ueda acknowledged that higher tariffs could lead to short-term inflation in the U.S., he also noted that these tariffs could put downward pressure on U.S. economic growth over time by raising the cost of goods and reducing consumer demand.

The White House confirmed that retaliatory tariffs will take effect immediately, including a 25 percent tariff on car imports set to begin on April 3.

Global surveys revealed a decline in factory activity across various countries, including Japan, the U.K., and the U.S., in March. Many businesses were reportedly bracing for the impact of these new duties, adjusting their production strategies in anticipation of rising costs.

The potential long-term effects of U.S. trade restrictions will likely be one of the key topics discussed by financial leaders at the upcoming IMF and G20 spring meetings later this month.

Experts suggest that the current trade tensions might spur a shift in global supply chains. Countries may begin seeking alternative markets for their goods, and businesses may adjust production strategies to minimize tariff exposure. However, this shift could take years and might exacerbate geopolitical tensions, especially between the U.S. and its major trading partners like China, the EU, and Japan.