Trump says Japan sending team for talks, Japan urges him to rethink tariffs

WASHINGTON (Reuters) - Japan is sending a team to negotiate on trade, U.S. President Donald Trump said, adding that he spoke earlier on Monday with Japanese Prime Minister Shigeru Ishiba, who separately said he told Trump to rethink tariff policies.

Trump's decision to impose a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to Japan's export-heavy economy. Analysts predict the higher duties could knock up to 0.8% off economic growth.

"Countries from all over the world are talking to us. Tough but fair parameters are being set," Trump wrote on the Truth Social platform.

Trump has put Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer in charge of trade negotiations with Japan, Bessent said on social media.

The Japanese prime minister said he told Trump in a telephone call that his tariff policies are extremely disappointing and urged him to rethink.

"So we have a great relationship with Japan. We're going to keep it that way," Trump later told reporters on Monday.

Trump said last week that he would impose a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries, including some of Washington's biggest trading partners, rattling global markets and bewildering U.S. allies.

Ishiba summoned key economic ministers, including Finance Minister Katsunobu Kato, Sunday evening and instructed them to be vigilant and respond to market developments, according to Japan's Nikkei newspaper.

(Reporting by Steve Holland, Kanishka Singh and Susan Heavey; Editing by Lisa Shumaker)