U.S. President Donald Trump on Tuesday said Japan was being "tough" in trade talks and the European Union had not yet offered what he considered a fair deal, as a team led by Treasury Secretary Scott Bessent stayed at the G7 meeting in Canada to keep working on trade issues after Trump's abrupt early departure.

US President Donald Trump and Japanese Prime Minister Shigeru Ishiba failed to reach an agreement on a trade package on the sidelines of the Group of Seven summit, an outcome that leaves the Asian nation inching closer to a possible recession as the pain of US tariffs hits its economy.