US tariff impact on Japan corporate profits uncertain, BOJ official says

Japan's trade agreement with the United States has reduced uncertainty over the economic outlook, though it is hard to assess the extent of the impact from U.S. tariffs on corporate profits, a senior Bank of Japan official said on Monday.

"Wage increases will likely continue as a trend due to structural labour shortages. But it's hard to know what will happen in next year's wage talks as the impact of tariffs on corporate profits will only start to show from now on," Kazuhiro Masaki, the BOJ's Osaka branch manager, told a news conference.

REUTERS