TOKYO (Kyodo) -- The head of Japan's auto industry body on Wednesday called on the government's top tariff negotiator to continue pushing the United States to remove its auto levies altogether, even after a rate reduction took effect the previous day.

Masanori Katayama, chairman of the Japan Automobile Manufacturers Association, told Japanese negotiator Ryosei Akazawa that his and the government's efforts to secure a lower tariff were appreciated, saying the agreement with U.S. President Donald Trump averted a "devastating" blow to the Japanese auto industry.

Trump raised the duty on automobiles imported to the United States to 27.5 percent in April, with Tokyo and Washington negotiating in July to lower the rate to 15 percent, starting Tuesday.

The reduced duty remains far higher than the 2.5 percent rate in place before Trump launched his global trade salvos.

Noting that the impact of a 15 percent tariff is "by no means small," Katayama, chairman and CEO of Isuzu Motors Ltd., said the industry group hopes the government will continue negotiations with the Trump administration to restore an "open and free" trade environment.

"The Japanese auto industry and manufacturers will continue to make our utmost effort to boost competitiveness, protect employment and sustain a positive cycle of wage hikes," Katayama said during the meeting, part of which was open to the media.

In response, Akazawa, who serves as economic revitalization minister, said the government "cannot rejoice unreservedly" while the 15 percent rate remains in place, vowing to work with the industry to "overcome a situation that can be described as a national crisis."

The United States is a key market for Japanese automakers, with approximately 16 million new vehicles sold there annually, more than triple the number in Japan.

Separately, the head of the Japan Foreign Trade Council also welcomed the tariff reduction that puts Japan on par with competitors such as the European Union and South Korea.

At a news conference, Tatsuo Yasunaga, chairman of major trading house Mitsui & Co., cautioned that the agreement with the United States has not resolved all issues, noting that "it is unclear who would bear the burden of the additional 15 percent."

Japan auto body urges gov't to continue talks with US to remove tariffs