Japan's economy is facing crises: US tariffs endanger trend!

Japan's economy is facing crises: US tariffs endanger trend!

Japan's economy is under pressure as the threat of further US tariffs on Japanese products increases uncertainty in the country. Loud Market screener Current data shows that the Japanese currency - the yen - is weakening against the euro, which could have a negative impact on exports. On May 16, 2025, the rate was 1 JPY = 162.8810 JPY, showing a change of -0.02% in the last five days and -0.35% in the long-term comparison.

The economic challenges are compounded by repeated announcements of looming tariffs from the US, leading to worrying developments in Japan's economy. Analysts warn that the impact of these tariffs could harm the competitiveness of Japanese products in the international market.

Current exchange rate developments

The Bank of Japan (BOJ) has reported that exchange rate data has been published daily since January 4, 2007, although the published figures are based on information from market participants and may be subject to revision. Loud BOJ Data for the last 70 business days is available from the List of Exchange Rates, with spot rates for USD/YEN and EUR/USD at 9:00 and 17:00 JST representing averages of the bid and ask rates.

It should be noted that the EUR/YEN spot rates are not included separately in the BOJ Time-Series Data Search, but they can be obtained by multiplying the US Dollar/Yen and Euro/US Dollar spot rates. This methodology is important for investors and analysts to make accurate calculations and make informed decisions.

Amid these developments, the yen's exchange rate has also changed noticeably as the market reacts to political and economic uncertainty. Close monitoring of exchange rates is of great importance as changes in monetary policy can quickly influence the market landscape.

Outlook on the economy

With economic challenges looming and the potential negative impact of looming U.S. tariffs, analysts and policymakers in Japan must find ways to stabilize the economy. Action is needed to safeguard exports and maintain confidence in the Japanese economy.

The Bank of Japan remains vigilant in the current situation and will continue to publish its exchange rate development data to remain transparent and provide market players with the necessary information. Measures may be necessary to halt the decline of the yen and ensure economic stability.