Japanese car exports to the United States fell by more than 25% in June. The decline comes amid growing concern about the lack of an agreement between Tokyo and Washington to mitigate the impact of trade tariffs imposed by President Donald Trump.

The automotive industry is of immense importance to Japan - nearly 8% of all jobs in the country are related to it. Japan is home to the world's best-selling automaker, Toyota, as well as other giants such as Honda and Nissan.

The government in Tokyo is conducting intensive negotiations for an exemption from the 25% US tariff on vehicles, which is expected to take effect on August 1. Despite several rounds of talks, an agreement has not yet been reached.

Japan posted a trade surplus of 153.1 billion yen (about $1 billion) in the quarter ending in June, but exports to the United States fell 11.4 percent year-on-year to 1.7 trillion yen. Auto exports plunged 26.7 percent, the finance ministry said.

Auto parts and pharmaceutical exports also fell, adding to the overall decline.

Japan’s trade surplus with the United States shrank 22.9 percent in June from a year earlier, its second straight month of decline, even as imports from the United States also fell 2 percent.

Japan, a strategic ally and the largest investor in the United States, is subject to the 10 percent basic tariff imposed on most countries, as well as higher surcharges on cars, steel and aluminum.

In April, Trump also announced a new “reciprocal” tariff of 24% on Japanese goods, but later temporarily postponed it. In early July, however, his administration announced a new, now final rate of 25%, which will take effect on August 1.

According to media reports, US Treasury Secretary Scott Besant is expected to visit the Osaka World Expo over the weekend and meet with Japanese Prime Minister Shigeru Ishiba in Tokyo. | BGNES, AFP