The drop comes ahead of a planned 25% tariff on all Japanese imports starting Aug. 1, following earlier auto-specific levies imposed in April.

Trump shared screenshots of letters detailing new tariff rates for over a dozen countries, allowing room for further negotiations before the renewed deadline of Aug. 1.

The US has imposed new tariffs on imports from seven countries, including the Philippines and Algeria, as part of Trump's drive to reduce the trade deficit and promote fair trade.

The Japanese government announced Tuesday it plans to negotiate with the Trump administration over a planned increase in the tariff rate placed on it, even if it was painful news to receive.

The Trump administration announced that some deals had been made with trading partners, and letters would be sent out on Monday notifying other countries of higher tariffs starting in August.

TOKYO (Reuters) -Japan must diversify trade ties beyond the U.S. market to mitigate risks and focus on partnerships with countries favouring free trade, Hirofumi Yoshimura, co-representative of the opposition Japan Innovation Party, said on Monday.