Japan’s Firms See Business Climate Worsen on Tariff Hits
Japan’s largest businesses turned pessimistic for the first time in more than a year as Donald Trump’s sweeping tariffs upended key sectors, a development that could complicate the Bank of Japan’s policy path.
The Business Sentiment Index for large firms registered minus 1.9 for the April-June quarter, slipping into negative territory for the first time since the first quarter of 2024, according to a Finance Ministry survey released Thursday. A negative figure indicates that more companies reported deteriorating conditions than those that saw improvements.