From the Overview: "In April 2019, the United States and Japan held their first round of negotiations toward a new bilateral trade agreement. The Trump Administration is pursuing the talks with Japan under U.S. Trade Promotion Authority (TPA) procedures, potentially allowing for expedited legislative consideration of a concluded agreement. [...] The two parties continue to negotiate on the precise scope of the talks, but both sides appear to prioritize quick results over a more comprehensive negotiation. Key issues are likely to include trade commitments on motor vehicles, agricultural goods, and services, as well as areas where the two nations have largely similar goals, such as digital trade. Currency commitments are a priority among some U.S. stakeholders, but Japan opposes including them in the trade talks. On May 17, 2019, following an investigation by the U.S. Department of Commerce, President Trump proclaimed U.S. motor vehicle and parts imports, particularly from Japan and the EU, a threat to U.S. national security. [...] Given that motor vehicles are the top Japanese export to the United States, U.S. import restrictions on the sector would likely create a strong backlash from Japan. President Trump has stated he is using the threat of auto tariffs to influence broader U.S.-Japan trade negotiations, but it is unclear what auto outcomes the President seeks as part of the FTA [free trade agreement] talks."
CRS In Focus, IF11120
Congressional Research Service: https://crsreports.congress.gov/