*

Ishiba emphasizes Japan's investment in US, aims to

protect

national interests

*

Japan seeks exemption from US auto tariffs amid stalled

negotiations

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Opposition criticizes Ishiba's negotiation strategy

(Adds comments from Akazawa in paragraphs 7-8)

By Makiko Yamazaki

TOKYO, July 2 (Reuters) - Japanese Prime Minister

Shigeru Ishiba said on Wednesday he was determined to protect

his country's national interests as trade negotiations with the

U.S. struggled and President Donald Trump threatened even higher

tariff rates on the Asian ally.

"Japan is different from other countries as we are the

largest investor in the United States, creating jobs," Ishiba

said in a public debate with opposition party leaders.

"With our basic focus being on investment rather than

tariffs, we'll continue to protect our national interest while

working to reduce the U.S. trade deficit with Japan," he said.

Trump on Tuesday cast doubt on a possible deal with Japan,

indicating that he could impose a tariff of 30% or 35% on

Japanese imports - well above the 24% rate he announced on April

2 and then paused until July 9.

Tokyo has yet to secure a trade deal after nearly three

months of negotiations as it scrambles to find ways to get

Washington to exempt Japan's automakers from 25% automobile

industry-specific tariffs, which are hurting the country's

manufacturing sector.

Japanese broadcaster TV Asahi reported on Wednesday that

Japan's tariff negotiator, Ryosei Akazawa, was organising his

eighth visit to the United States as early as this weekend.

Speaking to reporters late Wednesday, Akazawa said he would

not rule out the possibility of travelling to the U.S., but no

specific plan had been decided.

Echoing Ishiba, Akazawa said he was aware that July 9 was an

important milestone, but that Japan should not rush into

reaching an agreement that would harm the country's interests.

Ishiba said during the debate that Japan would continue to

create jobs in the U.S. while protecting domestic industries.

"If auto sales to the U.S. are bound to drop, we will boost

domestic demand and diversify export destinations to protect

Japanese industries," Ishiba said.

The deadlock in the trade talks could hurt the ruling

coalition in a key upper house election on July 20, although

analysts say easy concessions could also undermine their

support.

Yoshihiko Noda, the leader of the largest opposition

Constitutional Democratic Party of Japan, criticised Ishiba's

tactics, accusing his administration of failing to set a clear

framework for negotiations and being unable to convince the U.S.

side on Japan's contributions.