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Japan and the U.S. have begun trade negotiations, with media reports suggesting Tokyo’s delegation is trying to win a reprieve from the tariffs by pledging to make more cars in the U.S. 

President Donald Trump’s tariff campaign is likely to worsen inflation and raise the bar for Japanese companies to invest in the U.S., says the chair of the Japan External Trade Organization.

Japan has raised the issue of auto tariffs with the U.S. after President Donald Trump threatened to impose a 25% levy on car imports, a move that would deliver a big blow to Japan’s economy.

Tokyo asked President Donald Trump to exclude Japanese companies from his fresh tariffs on steel and aluminum.