Japanese warning: US tariffs uncertainty impacting global economy, exacerbating downturn risks for Japanese economy.

The Japanese government warned that there is uncertainty surrounding the impact of US trade policy as tariffs could harm the global economy, but thanks to the stable corporate sector, Japan's domestic economy is gradually recovering. In its monthly report on Friday, the Japanese government stated that the downside risks to the Japanese economy are increasing due to President Donald Trump's tariffs and issued a warning about the impact on market volatility. Trump claimed on Wednesday that there was "significant progress" in tariff negotiations with Japan. Previously, Trump announced a series of tariffs on global imports, shaking the markets and sparking concerns of an economic recession. The two countries plan to hold a second meeting later this month. The April monthly report released by the Japanese Cabinet Office on Friday stated, "The economy is recovering gradually, but US trade policy is bringing uncertainties." The Japanese government expects the economy to continue recovering, but the increase in US tariffs may have an impact on Japan through trade and market volatility. Japanese Cabinet Office officials stated, "It is necessary to be more vigilant than ever about the impact of tariffs on the domestic and global economy." The report noted that while consumer confidence has weakened due to rising inflation, especially in daily essentials like food, private consumption, which accounts for over half of the economy, is showing signs of recovery. For the first time since March 2022, the Japanese government has lowered its expectations for business confidence, describing it as "almost flat", after a survey by the Bank of Japan showed that the business sentiment of major manufacturers deteriorated to its lowest level in a year in the three months leading up to March.