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.

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 auto exports to the United States tumbled more than a quarter in June, official data showed Thursday, amid growing concern at the failure of Tokyo to strike a deal to avoid the worst of Donald Trump’s tariffs.

Major Pacific countries told by the US to prepare for conflict as regional tensions continue to rise over threat to Taiwan

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.

Fears of a recession are mounting in the world's fourth-largest economy, after export to the US declined for the second month in a row in June. View on euronews

The dollar was broadly stronger against major peers on Thursday as investors assessed U.S. President Donald Trump's latest comments on Fed Chair Jerome Powell's future, while concerns over a pivotal election in Japan weighed on the yen.

There is a goods trade deficit with Japan because the U.S. imports more than it exports, which Trump views as a sign of unfairness in the trading arrangements. In 2024, federal trade data shows the U.S. goods trade deficit with Japan was $68.5 billion.

US President Donald Trump attacked the car trade imbalance between the US and Japan again on Sunday, days ahead of a scheduled visit by Treasury Secretary Scott Bessent to the Asian country that could apply further pressure to the minority government.