Nikkei in Japan closed lower on Monday. Investors were cautious about Trump's tariffs. They awaited details and impact on companies. Yaskawa Electric's shares fell due to profit forecast cut. Automakers like Toyota and Honda also declined.

US President Donald Trump has threatened to impose a "30% or 35%" tariff on Japan if a deal between the two countries is not reached before a deadline next week. That would be well above the 24% tariff Japan was hit with as part of Trump's so-called "Liberation Day" on 2 April, when he announced steep import duties on countries around the world.

The United States is close to finalizing several trade pacts in coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates set to take effect on August 1.