The Japanese yen appreciated to around 146 per dollar on Thursday, extending gains from the previous session as the US dollar weakened amid a sharp drop in Treasury yields. Global trade tensions also contributed to market caution as US President Donald Trump announced a 50% tariff on Brazilian imports, effective August 1, citing unfair trade practices. Meanwhile, US-Japan trade talks have stalled, particularly over Japan’s protection of its rice market. Trump recently imposed a 25% tariff on Japanese goods, also set to take effect on August 1, and ruled out any extension of the deadline. In response, Japanese Prime Minister Shigeru Ishiba called the move “truly regrettable” but reaffirmed Japan’s commitment to ongoing negotiations in pursuit of a mutually beneficial outcome. A local think tank projects the new tariffs could reduce Japan’s GDP by 0.8% in 2025 and by 1.9% cumulatively through 2029.