Japanese manufacturers less confident due to Trump tariff action

Japanese manufacturers were less confident about business conditions in May compared with April and they expect sentiment to weaken over the next three months as changing U.S. tariff action saps optimism, a Reuters Tankan poll showed. The subdued mood illustrates the challenge policymakers face after the economy shrank in the January-March quarter, with recovery under threat from U.S. President Donald Trump's trade policy involving the imposition and suspension of steep tariffs. In the monthly poll, which tracks the Bank of Japan's quarterly business survey, the manufacturers' business sentiment index slipped to plus 8 in May from plus 9 in April.