Japan Frets Over Global Economic Stability Amid U.S. Trade Policy Uncertainties

Japan's government has downgraded its global economic assessment, citing concerns about the unpredictability of U.S. trade policies under President Donald Trump. This marks the first time in nearly three years that Japan has revised its outlook on U.S. economic growth.

The move highlights Japan's apprehension about the widening consequences of U.S. tariffs, which have led to supply chain disruptions and decreased global demand. Japan is particularly wary of the potential impact on its own economic recovery, which has shown signs of moderation.

Despite a temporary truce in the U.S.-China trade war, uncertainties continue to linger, affecting business confidence and investment plans. The International Monetary Fund has also adjusted its global growth forecasts, reflecting similar concerns. Japan's recent economic contraction and declining exports to the U.S. underscore the significant challenges posed by current trade tensions.

(With inputs from agencies.)