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., even if the U.S. does move forward with its planned 25% tariffs on all Japanese exports.

Donald Trump is betting that tariffs rather than sanctions will fix economic and geopolitical imbalances. But does the threat of rising US inflation and retaliation make sanctions a safer choice?

Prime Minister Ishiba seeks to understand the emotional aspects behind President Trump's trade views. Japan will not impose retaliatory tariffs despite facing new import restrictions from its major trading partner.

Japanese Prime Minister Shigeru Ishiba will continue in office despite his party's election loss. He emphasised preventing a political vacuum and addressing issues like rising living costs, while planning to negotiate with the US on tariffs ahead of the August 1 deadline.

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.

Exports from Japan declined again in June, following a 1.7% drop in May, as U.S. tariffs continue to heighten the risk of a recession. According to a CNBC report, exports from the Asian powerhouse declined 0.

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.