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 U.S. is preparing to send Japan a letter outlining a new tariff rate for the nation, President Trump said Monday, despite months of intensive negotiations between the countries aimed at averting higher tariffs.