If no deal is made, Japanese imports face a 25 percent tariff from Trump, which threatens to drive up prices in the U.S. on affected goods. Japan mostly exports vehicles, machinery, and electronics to the U.S. It also risks damaging relations with a key Pacific ally of Washington.

Unlike the European Union, the Japanese government has made no indication it plans to impose any kind of reciprocal tariff on the U.S.

Japanese Prime Minister Shigeru Ishiba's coalition failed to secure a majority in the upper house elections, winning only 47 seats. This defeat leaves Ishiba's government in the minority and prompts concerns over potential political turmoil ahead of critical U.

Japan's top tariff negotiator Ryosei Akazawa will visit Washington from Monday for an eighth round of trade talks, with the deadline for U.S. President Donald Trump's so-called reciprocal tariffs looming on Aug.

More than two-thirds of Japanese firms believe the government should compile an extra budget later this year to mitigate the impact of U.S. President Donald Trump's new tariffs and rising prices, a Reuters survey showed on Thursday.

Japanese Prime Minister Shigeru Ishiba’s political standing took a major hit on Sunday as his coalition lost its hold on the upper house of parliament, according to projections by Japanese media outlets Nippon TV and TBS.

President Donald Trump on Monday set a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other countries

Small and medium-sized firms like Mitsuwa Electric that form the backbone of Japan's economy have weathered many storms over the decades, and company president Yuji Miyazaki is hopeful they will also withstand Donald Trump.

Trump has rolled back many of his steepest tariffs over recent months, including a sky-high levy on China, the top source of U.S. imports. In recent days, however, Trump announced plans to slap tariffs as high as 50% on dozens of countries, including 25% tariffs on top U.S. trade partners such as Japan and South Korea.