“A good deal is more important than a rushed deal, and a mutually beneficial trade agreement between the US and Japan remains within the realm of possibility,” Bessent said on X.

“I look forward to continuing formal talks in the future,” Bessent said following discussions with Japanese Prime Minister Shigeru Ishiba and trade envoy Ryosei Akazawa.

US President Donald Trump imposed tariffs on imports of Japanese cars, steel and aluminium earlier this year.

Trump sent letters to Japan and a string of other countries earlier this month informing them that higher import tariffs will kick in on Aug 1 unless they reach a deal with the US.

For Japanese imports, the additional tariff was set at 25%.

It was the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days.

Recent weak export data, including a sharp drop in vehicle exports to the US, raised fears that Japan, the world’s fourth-largest economy, could tip into a technical recession.

Trump this week poured cold water on the prospects of an agreement, saying Japan won’t “open up their country”.

Earlier this month, Ishiba, who faces tough upper house elections on Sunday that could end his premiership, said: “We will not easily compromise.”