EC Markets foreign exchange platform: Bank of Japan governor warns US tariffs could impact global trade, G20 meeting may focus on economic growth risks

In a speech to the Diet, Kazuo Ueda, the governor of the Bank of Japan, warned that the broad tariffs planned by the United States could seriously disrupt the global trade order and have different degrees of impact on the economies of various countries.

"The impact of US tariff policy on the global economy is highly uncertain, but if it is broad-based, it could have a significant impact on countries' trade activities." - Kazuo Ueda, governor of the Bank of Japan

President Trump is expected to announce new tariffs on Wednesday evening.EC Markets Forex PlatformThese include a 25 per cent tariff on car imports and a series of higher tariffs on goods from Asian powers, which a White House spokesperson said would take effect immediately.

Ueda also stressed that the ultimate impact of U.S. tariffs depends on the reaction of businesses and consumers, and if market sentiment is severely hit, it could lead to a slowdown in business investment, a drop in consumer spending, and increased economic uncertainty.

Weak global manufacturing data showed activity fell in March in Japan, the UK and the US, as companies cut investment amid uncertainty over tariff policy, weighing on growth.

The potential negative impact of US tariffs is expected to be a focus of discussion ahead of a meeting of G20 finance ministers and central bank governors in Washington this month. The Bank of Japan has not confirmed whether Mr. Ueda will attend, but Japan's finance minister usually attends.

"Tariffs may be a short-term referral to U.S. inflation, but in the long run, high tariffs may dampen economic growth and price increases." - Kazuo Ueda, Governor of the Bank of Japan

The impact of US tariffs will be an important factor in the Bank of Japan's next policy decisions. The Bank of Japan will hold a policy meeting from April 30 to May 1, and market analysts widely expect the Bank of Japan to raise interest rates again in the third quarter, most likely in July.

The US tariff policy not only affects the global trade pattern, but also may change the monetary policy path of major economies. If tariffs trigger a pick-up in inflation, the Federal Reserve may be forced to adjust its interest rate cut expectations, and the Bank of Japan's plan to raise interest rates may also be delayed.

In addition, the global manufacturing industry has shown weakness, and if the United States imposes tariffs, it may further dampen market confidence and dampen investment and consumption.