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.

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.

The Japanese are feeling ‘sad and betrayed’ at the US president’s treatment of a long-term ally, an observer says.