Japanese Prime Minister Shigeru Ishiba said Tuesday that U.S. tariffs are already severely impacting many Japanese firms, including automakers, but reiterated he will not rush to reach a deal with Washington at the expense of undermining his nation's interests.

Japan's exports fell in May for the first time in eight months as big automakers like Toyota were hit by sweeping U.S. tariffs, and the failure of Tokyo to clinch a trade deal this week will likely pile pressure on a fragile economy.