Bank of Japan Gov. Kazuo Ueda said U.S. tariffs could have a significant impact on trade activity in affected nations, although for now, the overall picture of the policies remains unclear ahead of an official announcement.

"Depending on the size and area of the tariffs, it’s possible they’ll have a large impact on trade activities among nations,” Ueda said in response to questions in parliament Wednesday. "Another big point is how household and business sentiment will be affected by them, influencing overall spending.”

Ueda’s first public comments since U.S. President Donald Trump officially unveiled a 25% auto tariff last week suggest he continues to monitor developments while refraining from offering any hints as to whether he’s become more cautious or less with regard to the BOJ’s rate hike path.

Details from Trump regarding so-called reciprocal tariffs on U.S. trading partners are expected to be unveiled in the early hours of Thursday in Tokyo.

"It’s unfortunate but uncertainties are high so we will be closely watching developments of policies to grasp their economic impacts more precisely,” Ueda said.

Ahead of the latest levies, Japan’s authorities have been rushing to prepare for potential impacts. Prime Minister Shigeru Ishiba Tuesday introduced support measures for businesses that include the establishment of 1,000 consultation booths across the nation.

Japan’s economy has so far developed in line with the BOJ’s economic outlook. The latest quarterly tankan survey published Tuesday showed that business confidence remains relatively robust even with U.S. levies clouding the outlook.

In a survey last month, a majority of economists forecast the BOJ to next lift its benchmark rate in June or July. After a barrage of reports related to U.S. tariffs, traders now see the chance of a rate hike at the next meeting ending May 1 at around 16% as of Wednesday, plunging from around 26% a week ago.