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.

Why It Matters 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.

President Donald Trump on Wednesday announced a trade deal with Vietnam a day after he said a similar deal with Japan is unlikely.