Roughly 8% of jobs are tied to the auto industry in Japan, which is home to the world’s top-selling carmaker Toyota as well as Honda, Nissan and other giants.

The government is seeking relief from 25% US vehicle tariffs and other trade levies due to come into force on Aug 1, but no agreement has been reached despite several rounds of talks.

Japan posted a trade surplus in the three months in June, with exports exceeding the value of imports by 153.1 billion yen (US$1.0 billion).

Exports to the US fell 11.4% on-year to 1.7 trillion yen, with autos down 26.7%, finance ministry data showed.

Shipments of pharmaceutical drugs and auto parts also contributed to the decline, the ministry said.

Japan’s trade surplus with the US shrank 22.9% year-on-year in June – the second straight monthly contraction, even as imports from the country slipped 2.0%.

Japan, a key US ally and its biggest investor, is subject to the same 10% baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.

Trump also announced an additional 24% “reciprocal” toll on Japan in early April but later paused it along with similar measures on other countries.

But earlier this month he informed a number of trading partners of new country-specific rates, hitting Japan with a 25% tax, up from the 24% announced in April. The levies will be applied from Aug 1.

Reports said US treasury secretary Scott Bessent was expected to visit the World Expo in Osaka this weekend and meet Prime Minister Shigeru Ishiba in Tokyo.