The commercial relationship between the United States and Japan is at a critical juncture, with a looming 25% tariff threat from President Donald Trump on Japanese imports. This could significantly raise prices for American consumers on key products.

Tokyo and Washington have been negotiating a deal to avoid 25% US tariffs on Japanese exports to the world's largest economy. On July 7, Trump notified several US trading partners of increased country-specific "reciprocal tariff" rates, with Japan due to be subject to 25% tariffs as of Aug. 1 unless another deal is reached beforehand.

For Americans who were awaiting the release of the Nintendo Switch 2, the delay of U.S. pre-orders for the gaming console this April was one indication of what’s to come.

Japan's Liberal Democratic Party, which Prime Minister Ishiba leads, secured 47 seats in parliament, short of the 50 it needs for a majority.

TOKYO, July 17 (Reuters) - Japan's top trade negotiator Ryosei Akazawa held talks with U.S. Commerce Secretary Howard Lutnick on U.S. tariffs on Thursday, as Tokyo races to avert a 25% levy that will be imposed unless a deal is clinched by an August 1 deadline.

Asian governments are hoping a flurry of last-minute diplomacy will secure them better deals from the White House. Japan’s chief trade negotiator Ryosei Akazawa met with US Commerce Secretary Howard Lutnick for more than two hours on Monday — his eighth round of trade talks with US officials.