Tokyo is hoping to avoid falling into the firing line after U.S. President Donald Trump followed through on his campaign promise to impose steep tariffs on three trading partners.

Japan intends to closely monitor the impact on its currency of US President Donald Trump’s new tariffs and is worried about the international fallout from the trade imposts, Finance Minister Katsunobu Kato said.

The markets and currencies of U.S. allies Japan and South Korea plunged Monday as their capital markets opened for the first time since President Trump announced plans to hammer Mexico and Canada with tariffs this week.

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

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.