TOKYO, May 11 (Reuters) - Japanese Prime Minister

Shigeru Ishiba reiterated on Sunday that he will aim for the

elimination of all tariffs in trade negotiations with the United

States.

Speaking on a Fuji Television morning program, Ishiba said

that "discussions have gradually come together," and that

Tokyo's relationship with U.S. President Donald Trump is

"surprisingly good."

However, Ishiba said that Washington's agreement with

London, announced on Thursday, which lowers prohibitive duties

on British car exports while keeping a baseline 10% tariff in

place, was "one model" for trade deals, "but we should aim for

0% tariffs."

Saying that high auto import levies would make cars more

expensive for U.S. consumers, Ishiba added, "for the sake of the

American economy as well, shouldn't those tariffs be lowered?"

Trump said on Friday that the U.S. will maintain a baseline

10% tariff on imports even after trade deals are struck, adding

there could be exemptions when countries offer significant trade

terms.

Currently, Japan faces a 25% levy on economically crucial

auto exports to the United States, and a reciprocal 24% tariff

on other Japanese goods.

In terms of supporting the domestic economy, Ishiba said

that the government needs to think carefully about a mooted

reduction in consumption tax.

"If we suddenly lower the consumption tax, what happens to

the country's finances?" he said.

"We have to think if there aren't other ways that we can

help those who are truly in need."