Negotiations have stalled ahead of next week’s deadline, with some suggesting Japan misjudged the depth of President Trump’s frustration over Tokyo’s policies.

As Tokyo seeks to avert the US' threat to impose tariffs of up to 35 per cent on Japanese goods, Prime Minister Ishiba stressed that Japan, as the biggest investor nation in the US economy, should be treated differently from other countries.

The U.S. is preparing to send Japan a letter outlining a new tariff rate for the nation, President Trump said Monday, despite months of intensive negotiations between the countries aimed at averting higher tariffs.