Trump says 25% reciprocal tariff on Japan might go into effect on Aug. 1

U.S. President Donald Trump said Washington might push ahead with the proposed 25 percent reciprocal tariffs on Japan, hinting at difficulties in reaching a trade deal.

Speaking at the White House on Wednesday, Trump said his administration may "live by the letter with Japan," referring to letters he sent to countries notifying them of reciprocal tariff rates that will go into effect on August 1st.

Observers expected tough trade negotiations between Washington and Tokyo, with Japan showing little flexibility on the U.S.'s call for more access to Japan's agricultural market.