More than two-thirds of Japanese firms believe the government should compile an extra budget later this year to mitigate the impact of U.S. President Donald Trump's new tariffs and rising prices, a Reuters survey showed on Thursday.

Exports from Japan declined again in June, following a 1.7% drop in May, as U.S. tariffs continue to heighten the risk of a recession. According to a CNBC report, exports from the Asian powerhouse declined 0.

Major Pacific countries told by the US to prepare for conflict as regional tensions continue to rise over threat to Taiwan

The dollar was broadly stronger against major peers on Thursday as investors assessed U.S. President Donald Trump's latest comments on Fed Chair Jerome Powell's future, while concerns over a pivotal election in Japan weighed on the yen.

Prime Minister Shigeru Ishiba will meet with U.S. Treasury Secretary Scott Bessent on Friday, the Japanese government said, ahead of the scheduled Aug. 1 imposition of a country-specific 25 percent duty on Japan.

The cost of living, social insurance and demographic issues were far more important to them despite Japan being locked in a brutal trade war with the United States over high tariffs put into place and planned by U.S. President Donald Trump.

The US has reportedly urged Pacific allies to prepare for potential conflict with China over Taiwan, as Japan signals the dawn of a 'new crisis era' and Beijing appears to be ramping up its military technology investments.

US President Donald Trump attacked the car trade imbalance between the US and Japan again on Sunday, days ahead of a scheduled visit by Treasury Secretary Scott Bessent to the Asian country that could apply further pressure to the minority government.