TOKYO (Reuters) -Japan has eased its demand for a full repeal of the 25% U.S. auto tariff and is instead proposing a mechanism to reduce the rate based on how much countries contribute to the U.S. auto industry, the Asahi newspaper reported on Friday.

Japan's chief tariff negotiator, Ryosei Akazawa, is in Washington for a fifth round of talks with U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Under Japan's latest proposal, Washington would lower auto tariffs based on factors such as the number of vehicles Japanese automakers produce in the U.S. and the volume of cars exported from there to other markets, the Asahi said, without citing sources.

Akazawa "strongly reiterated Japan's request for a review of the tariff measures imposed", Japan's government said in a statement after the economic revitalisation minister met Lutnick.

"The two sides reaffirmed their respective positions on U.S. tariff measures and engaged in concrete discussions on expanding trade, addressing non-tariff measures and cooperating on economic security," it added in the statement.