Japanese Prime Minister Shigeru Ishiba and US President Donald Trump agreed to continue trade negotiations but failed to reach a breakthrough on tariffs that threaten Japan's economy. The two leaders met for 30 minutes on the sidelines of the G7 summit at the Kananaskis resort in Canada. Japan had hoped the meeting would advance a trade deal.

Ishiba said that they have been exploring the possibility of a deal down to the wire, but there are still points where our views remain divided. He urged Trump to scrap a 25% tariff on Japanese cars and a 24% reciprocal tariff on other imports, which are paused until July 9. These tariffs could reduce Japan's GDP by about 1 percentage point, and vehicle exports could be cut by US$17 billion. Ishiba and Trump are expected to have another opportunity to discuss trade directly when they attend the two-day NATO summit in The Hague, beginning on June 24.