Japan’s economy risks taking another hit if US President Donald Trump slaps fresh tariffs on China, sparking a renewed US-China trade war, according the government’s chief economist.

Policymakers, investors and economists are watching Trump’s trade policy amid fears that his threatened use of tariffs could batter global commerce.

Howard Lutnick, the financier President Trump has picked to lead the Commerce Department, said he favored “across-the-board” tariffs and was grilled about his financial ties in a nomination hearing Wednesday.

President Donald Trump’s renewed pledges to slap 25% tariffs on imports from Canada and Mexico on Feb. 1 jolted foreign exchange markets late in the New York trading session, sending currencies from both countries plunging against the US dollar.

China is President Donald Trump's prime target for a trade war — again. But China already put its boxing gloves on. In his first term, Trump slapped high tariffs on a range of Chinese goods. This time,

President Trump’s recent statements on trade suggest a more nuanced approach to tariffs, using them as a negotiating tool rather than an immediate economic weapon. In an interview with Fox News, Trump mentioned the possibility of tariffs as a significant tool against China,