TOKYO (Kyodo) -- The United States has refused Japan's full exemption from not only a 10 percent "reciprocal" tariff but a country-specific tariff in recent negotiations, sources close to the matter said Monday.

U.S. officials including Treasury Secretary Scott Bessent told Japan's top negotiator Ryosei Akazawa in their meeting in Washington last week that the administration of President Donald Trump intends to put only a cut in the 14 percent country-specific tariff, suspended through early July, on the negotiating table, the sources said.

The U.S. side stressed in the second round of the negotiations that it will only consider extending the 90-day suspension or lowering the 14 percent tariff depending on the progress of their talks, according to the sources.

Tokyo has been seeking full removal of "reciprocal" tariffs, an additional 25 percent levy for cars and a 25 percent duty for steel and aluminum, emphasizing its contributions to the world's largest economy through investment and job creation.

Washington has said it will not negotiate the global 10 percent baseline levy or tariffs on cars and steel products.

Japan is one of the first nations with which the United States has begun negotiations on its higher import tariffs.

Effective Saturday, the United States also imposed a 25 percent additional tariff on key auto parts such as engines and transmissions, with some relief measures offered for two years.

Trump apparently sees more room for Japan to open its auto and farm sectors. In the first round of talks in mid-April, the U.S. side expressed dissatisfaction over the number of U.S.-made cars imported into Japan and has pushed the country to open its market to more U.S.-grown crops, according to other sources.

Speaking at a news conference in Milan, Finance Minister Katsunobu Kato said Sunday that Japan is not thinking of using its holdings of U.S. Treasurys as a bargaining chip in trade negotiations with Washington.

Kato, who oversees bilateral talks on currency issues, made the remarks just days after suggesting Japan could use its U.S. bond holdings as a card in negotiations. Japan, along with China, is a major holder of U.S. Treasurys.

The finance minister made the comment in a TV program last week after U.S. government bonds, equities and the dollar faced sell-offs in financial markets in early April amid growing concern about President Donald Trump's aggressive tariff policies.