Japan's trade deal with the U.S. must include tariff concessions for its vital automobile industry, top trade negotiator Ryosei Akazawa said on Tuesday, after President Donald Trump announced 25% tariffs on goods from Japan starting August 1.

Japanese Prime Minister Shigeru Ishiba called the announcement of slightly higher US tariffs “truly regrettable” while he vowed to continue to protect his nation’s interests in the extended trade negotiations.

Japanese Prime Minister Shigeru Ishiba said on Tuesday that Japan would continue negotiations with the United States to seek a bilateral trade deal that benefits both countries. Japan has received a proposal from the United States to continue trade discussions until the newly set August 1 deadline,

EU said it was prepared to retaliate with tariffs on hundreds of American products, from U.S. beef, auto parts and beer to Boeing airplanes.

The European Union expects to find out on Monday whether President Trump will impose more tariffs, in a move economists have warned would have repercussions on both sides of the Atlantic.