Japan Pledges Continued Support as Inflation and Tariffs Bite

Japan’s new economics minister, Minoru Kiuchi, vowed to prop up the economy amid higher U.S. tariffs and domestic inflation. “It is undeniable that the recovery in personal consumption still lacks strength amid continued inflation,” he said Wednesday, adding that “until real wages rise strongly enough, the government must continue to firmly support the economy". Kiuchi emphasized that the government will monitor U.S. trade policy and assist affected companies, including financial aid for small firms. On monetary policy, he said the government will work closely with the Bank of Japan to achieve stable 2% inflation, stressing that “it is very important for the BoJ to steer monetary policy to realize both strong economic growth and price stability.” The comments come as new Prime Minister Sanae Takaichi orders her cabinet to prepare an economic stimulus package to ease household cost burdens.