Japan said Tuesday it has started talks with the United States over cutting tariffs on agricultural and industrial products, and that the two sides agreed to include digital trade as part of the new negotiations for a bilateral trade agreement.

During the first round of talks with economic revitalization minister Toshimitsu Motegi, U.S. Trade Representative Robert Lighthizer raised the "very large" trade deficit with Japan, urging the country to address the trade imbalances between the world's biggest and third-largest economies.

Speaking to reporters after the two-day meeting in Washington, Motegi said he and Lighthizer agreed to start talks on digital trade, an area including e-commerce and music distribution services, at an appropriate time.