Tokyo, Japan - US Treasury Secretary Scott Bessent said Friday that a trade deal with Japan remained possible, following talks in Tokyo ahead of the looming August 1 imposition of new tariffs.

"A good deal is more important than a rushed deal, and a mutually beneficial trade agreement between the United States and Japan remains within the realm of possibility," Bessent said on X.

"I look forward to continuing formal talks in the future," Bessent said following discussions with Japanese Prime Minister Shigeru Ishiba and trade envoy Ryosei Akazawa.

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President Donald Trump imposed tariffs on imports of Japanese cars, steel, and aluminium earlier this year.

Trump sent letters to Japan and a string of other countries earlier this month informing them that higher import tariffs will kick in on August 1 unless they reach a deal with the US.

For Japanese imports, the additional tariff was set at 25%.

It was the second time the US president had set a deadline after he postponed tariffs on almost all countries in April for 90 days.

Recent weak export data, including a sharp drop in vehicle exports to the US, raised fears that Japan, the world's fourth-largest economy, could tip into a technical recession.

Trump this week poured cold water on the prospects of an agreement, saying Japan won't "open up their country".

Earlier this month, Ishiba, who faces tough upper house elections on Sunday that could end his premiership, said: "We will not easily compromise."