If no deal is made, Japanese imports face a 25 percent tariff from Trump, which threatens to drive up prices in the U.S. on affected goods. Japan mostly exports vehicles, machinery, and electronics to the U.S. It also risks damaging relations with a key Pacific ally of Washington.

President Donald Trump's 'reciprocal" tariff deadline has shifted since April 2, but White House officials insist that Aug. 1 is a firm deadline.