Tokyo and Washington have been negotiating a deal to avoid 25% US tariffs on Japanese exports to the world's largest economy. On July 7, Trump notified several US trading partners of increased country-specific "reciprocal tariff" rates, with Japan due to be subject to 25% tariffs as of Aug. 1 unless another deal is reached beforehand.

Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high U.S. tariffs after a weekend election defeat left his coalition with a minority in both parliamentary chambers.