Japan announced on Saturday that it has made 'progress' in negotiations with the United States aimed at reducing the tariffs imposed by former President Donald Trump on Japanese imports, although both sides have yet to find a 'point of agreement'.

Trump had instituted a 10% tariff on Japanese goods, a move that affected Japan despite its status as a key U.S. ally and the largest investor in the United States.

In addition to this general tariff, higher duties were placed on automobiles, steel, and aluminum.

Furthermore, Trump had imposed reciprocal tariffs of 24% on Japan, which were later suspended until early July, following similar measures on other countries.

Japan is currently seeking to reduce or eliminate all of the tariffs levied by Trump.

During the fifth round of negotiations, Ryoshi Akazawa, Japan's trade envoy, informed Japanese reporters in Washington that 'we have made additional progress towards reaching an agreement'.

However, he noted, 'we have not yet found a point of agreement'.

Akazawa expressed hope that a deal could be reached 'as soon as possible', but indicated that negotiations might still be ongoing when the Group of Seven summit convenes on June 15.

Reports suggest that Japanese Prime Minister Shigeru Ishiba and Trump are planning to hold bilateral talks in conjunction with the G7 summit in Canada.

The tariffs imposed by Washington on imported automobiles, set at 25%, are particularly painful for Japan, given that approximately 8% of Japan's total employment is linked to this sector.

In the first quarter of 2025, Japan's economy, the fourth-largest globally, contracted by 0.2%, increasing the pressure on Ishiba, who faces low popularity ahead of the expected Senate elections in July.