Japanese carmakers have largely absorbed the cost of US President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.

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.

Japan was set to dispatch its chief tariff negotiator to the United States for an eighth round of ministerial-level talks but called it off after being forced into a waiting game by the White House.