New U.S. tariffs announced by President Donald Trump may delay, but likely won't derail, the Bank of Japan's plan to raise interest rates further as policymakers seek to avoid renewed yen falls that would worsen inflationary pressures.

A measure of Japanese bank shares plunged more than 7%, the most since August, as worries about the impact of harsher-than-expected US tariffs on Japan’s economy fueled bets the central bank may pause rate hikes.

Japan has refrained from talk of striking back at U.S. tariffs. Trade experts say that is because its inflation-strained economy limits its options.