Japan's trade deal with the United States must include tariff concessions for its vital automobile industry, top trade negotiator Ryosei Akazawa said on Tuesday, after US President Donald Trump announced 25 percent tariffs on goods from Japan starting August 1.

Japan was one of 14 countries, mainly in Asia, that Trump sent letters, informing them that higher import tariffs will kick in on August 1 unless they reach a deal with the United States, the second time he has set a deadline after he postponed tariffs on almost all countries in April for 90 days.

The Asian countries that have large trade imbalances with the United States have been key targets, including Japan (US$68.5 billion surplus in 2024), South Korea (US$66 billion), Thailand (US$45.6 billion) and Indonesia (US$17.9 billion).

Akazawa said he held a 40-minute phone talk with US Commerce Secretary Howard Lutnick, where the two sides agreed to "actively" continue negotiations.

"We are trying to agree on a package of measures" ranging from expanded trade, non-tariff barriers and cooperation on key economic security issues, Akazawa said.

"The two countries must garner trust through sincere dialogue, and reach common ground step by step. Through such a process, my job as negotiator is to agree on a full package as soon as possible."

Trump on Monday began notifying trade partners of steep tariff hikes but later indicated a willingness to delay implementation if countries made acceptable proposals. He also signed an executive order to put off the tariffs until August 1.

Akazawa said Japan had no deadline in mind, including August 1, in reaching a deal with the United States and would not sacrifice Japan's agriculture sector for the sake of an early agreement.

He also stressed that protecting the automobile sector, a mainstay of Japan's export-reliant economy that is being slapped with 25 percent tariffs, was among his top priorities.

"There's no point striking a deal with the US without an agreement on automobile tariffs," Akazawa said.

South Korea said it will accelerate negotiations with Washington to achieve a mutually beneficial deal before the 25 percent tax on its exports goes into effect.

South Korea's top trade envoy Yeo Han-koo met Lutnick on Monday after Trump's letter became public to continue high-level talks, the industry ministry said.

Yeo told Lutnick that exemptions or reductions in Trump's 25 percent auto and 50 percent steel tariffs must be included in any deal for Seoul to be an effective partner in rebuilding American manufacturing, the ministry said.

Southeast Asian nations, meanwhile, will express concern over "counterproductive" US tariffs, according to a draft statement.

"We expressed concern over rising global trade tensions and growing uncertainties in the international economic landscape, particularly the unilateral actions relating to tariffs," Asean foreign ministers meeting in Kuala Lumpur later this week said in a draft joint communique.

Without directly naming the US, the ministers said tariffs were "counterproductive and risk exacerbating global economic fragmentation and pose complex challenges to Asean's economic stability and growth".

Wendy Cutler, vice president of the Asia Society Policy Institute who formerly worked in the office of the US Trade Representative, said the tariff hikes on Japan and South Korea were “unfortunate”.

“Both have been close partners on economic security matters and have a lot to offer the United States on priority matters like shipbuilding, semiconductors, critical minerals and energy cooperation,” Cutler said. (Agencies)