Japanese carmakers have largely absorbed the cost of US President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.

Early on, Trump had expressed optimism about the potential for a quick trade deal with Japan, as he sought to renegotiate terms with dozens of countries during his reciprocal tariff pause. So far, with the deadline approaching,

Japan will not sacrifice the agricultural sector as part of its tariff talks with the United States, its top negotiator said on Tuesday, after President Donald Trump complained that the key Asian ally was not buying American rice.