Tokyo Sees US Trade Deals Easing Policy Uncertainty but Warns on Tariff Risks

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said in Tokyo that the recently concluded US-Japan and US-EU trade agreements have reduced uncertainty surrounding Washington’s trade policy, a development he believes will lessen downward pressure on both the Japanese and global economies. Akazawa, another senior Japanese official, noted the deals have only "eased uncertainty to some degree" and urged vigilance over the remaining US tariffs, which he warned could still pose downside risks to economic growth. Kato separately argued that Japan should engage with the United States on an executive order to avert a sudden tariff shock, while Akazawa projected that Japan’s labour shortage is likely to worsen, potentially magnifying the impact of any renewed trade frictions.