The Bank of Japan (BOJ) has decided to keep interest rates steady while slashing its growth forecasts due to the ongoing impact of U.S. tariffs. Concerns over economic uncertainty have led to a significant weakening of the Japanese yen, which has dropped over 1% amid investor jitters. Tariffs imposed by the U.S. have exacerbated worries about exports, prompting Japan to revise its economic outlook and maintain a dovish stance on future rate hikes. Analysts predict that the yen could face further challenges, with USD/JPY reaching near three-week highs. This situation highlights the broader implications of the trade war, which has also led other American allies to issue economic warnings.