Bank of Japan Governor Kazuo Ueda warned Thursday that the US tariff policy under United States President Donald Trump could disrupt service inflation and hinder price pass-through.

During a press conference, Ueda said it is "plausible" that growing trade uncertainty could distort Japan's price dynamics, complicating the central bank's policy outlook.

He clarified that no rate hike is currently planned while the price trend remains stalled. However, Ueda added that if Trump were to reduce or eliminate the tariffs, a faster rate increase "could be possible."