Trump express US and Japan have begun discussion on trade

U.S. President Donald Trump said on Friday the United States and Japan have begun discussion over trade, saying that Tokyo "knows it's a big deal" if an agreement cannot be reached.

"We're starting that," Trump told reporters aboard Air Force One. "In fact, Japan called us ... they came last week."

"If we don't make a deal with Japan, Japan knows it's a big deal," he added.

Trump, who is already challenging China, Mexico, Canada, and the European Union on trade issues, has expressed displeasure about his country's large trade deficit with Japan but had not asked Tokyo to take specific steps to address the imbalance.

On Friday, though, CNBC reported he had told a Wall Street Journal columnist he might take on trade issues with Japan, causing the dollar to slip against the yen.