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Reports: Trump's auto tariff threat dims prospect of US-Japan deal by this week

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Reports: Trump's auto tariff threat dims prospect of US-Japan deal by this week

The prospect of a U.S.-Japan trade pact being reached this week was thrown into doubt as negotiators remained at odds over President Donald Trump's threat to impose tariffs on Japanese vehicles, media reports said.

Japan had concerns about signing an agreement without a commitment that the U.S. will not impose tariffs on autos and auto parts imported from the Asian country, Reuters reported, citing executives at two unnamed automakers briefed on the matter. The sources also said these concerns could postpone the signing of the agreement, which was initially expected to take place on the sidelines of the United Nations General Assembly this week.

Japan wanted an agreement with a so-called sunset clause, which would cancel the deal if Trump decides to push ahead with his auto tariff threat, The New York Times reported Sept. 23. The U.S. reportedly rejected that demand.

Following talks with U.S. Trade Representative Robert Lighthizer, Japanese Foreign Minister Toshimitsu Motegi said he did not expect much delay to the signing beyond the end of the month, according to the Reuters report. Motegi also said the auto tariff issue "will not be something to worry about."

Japan has already pledged to phase out import duty on U.S. wine over time and cut tariffs on American beef as part of the deal.