Japanese business leaders and officials were indignant at the U.S. decision to pause China tariffs, while Japan faces economic hardship from auto levies.

Shares have logged modest gains in most world markets as the initial euphoria over the 90-day truce in the trade war between the United States and China fades.

TOKYO—The Bank of Japan halved its growth forecast for the Japanese economy as U.S. tariffs begin to bite, highlighting how President Trump’s efforts to rewire U.S. trade are hitting economies around the world.

Japanese Prime Minister Shigeru Ishiba reiterated on Sunday that he will aim for the elimination of all tariffs in trade negotiations with the United States.

The head of the global trade watchdog says global free trade is facing a “crisis” as U.S. President Donald Trump disrupts world commerce with his fast-changing tariffs and other policies