Senior U.S. and Japanese officials have agreed to launch immediate working-level trade discussions following what the U.S. Treasury described as “frank and constructive” meetings in Washington on Thursday. However, Japanese reactions suggest a more cautious outlook.

U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer met with Japan’s Economic Revitalization Minister Ryosei Akazawa in a bid to smooth tensions and avoid steep tariffs introduced last month by President Donald Trump.

According to a Treasury statement, Bessent raised key issues during the talks—including tariffs, non-tariff barriers, and the link between economic and national security. Posting on X (formerly Twitter), Bessent praised Japan’s “swift and positive engagement” and expressed optimism about finding common ground. Greer echoed this sentiment, highlighting the strength of U.S.-Japan ties.

But Tokyo’s assessment was notably less upbeat. Japan’s Nikkei newspaper reported Friday that U.S. negotiators showed little willingness to ease tariffs on cars, steel, and aluminum—fueling Japanese concerns about the path forward.

Richard Katz, a former senior fellow at the Carnegie Council, characterized the U.S. refusal to even discuss Trump’s 25% tariffs on autos and auto parts as “an aggressive stance.”

While both nations had hoped to secure a deal by July—when a 90-day pause on Trump’s reciprocal tariffs expires—Katz suggested the chances of meeting that goal are now fading.

According to Nikkei, Japanese officials outlined steps to trim the country’s large trade surplus with the U.S., including easing non-tariff restrictions on auto imports and boosting purchases of American agricultural products. But Japanese Prime Minister Shigeru Ishiba later declared the tariffs on cars “completely unacceptable,” adding in a Fuji News Network interview, “Reducing the U.S. trade deficit is possible—and we’re ready to work on that—but not at the cost of Japanese jobs.”

Trump’s April 2 tariff package slapped a 10% levy on most countriesexcept Canada, Mexico, and China, with Japan facing a steep 24% rate by July unless a deal is reached. Washington has also pressed Tokyo to lower its own import tariffs, and Trump has accused Japan of deliberately weakening the yen to gain a trade edge—an allegation Japan firmly denies. The U.S. tariffs, especially the 25% tax on imported cars, are already straining Japan’s economy.