Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:26 to 9:39 a.m.
Wednesday, February 12, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Nippon Steel’s proposed acquisition of U.S. Steel

Q: I would like to ask you about Nippon Steel’s proposed acquisition of U.S. Steel. President Trump of the United States remarked after the Japan-U.S. summit meeting that an agreement had been reached not on an acquisition but on a large investment. Please tell me about the Ministry of Economy, Trade and Industry (METI)’s perception of this and about its expectations for future developments.

A: My understanding is that, at the Japan-U.S. summit meeting, the importance of the Japan-U.S. economic relationship, including investments in the United States made by Japanese companies, was confirmed by President Trump. Regarding the Nippon Steel-U.S. Steel case, as you mentioned just now and as Prime Minister Ishiba has mentioned, I understand that the view has been shared with President Trump that this does not represent a unilateral relationship like a mere acquisition but will co-create excellent products that are needed by the United States and by the rest of the world through the use of Japanese technology and funds. I hope that discussion on this case will make progress based on this shared view.

Additional tariffs on steel and aluminum products announced by the United States

Q: I would like to ask you about the U.S. tariffs on steel and aluminum products. The other day, President Trump announced the imposition of additional tariffs on steel and aluminum products. Meanwhile, there have been voices of concern about and protests against the tariff measures from the governments of other countries. Please tell me about the reaction of METI.

Also, I expect that the exceptional measures taken on behalf of Japan in relation to the tariff measures, such as tariff quotas and exemption based on product-by-product applications, will also be removed. Please tell me about Japan’s future policy stance—whether Japan will request the continuation of the exceptional measures, including the existing tariff quotas, or the complete removal of the tariff measures from the standpoint of emphasizing free trade by all means.

A: I am aware of the announcement that you pointed out. On February 12—that is, February 11, U.S. time—we requested the U.S. government to grant Japanese companies exemption from the tariff measures. In addition, through the Consultation Desk on U.S. Tariff Measures for Japanese Companies, which JETRO opened on February 2, we are providing information and advice to Japanese companies, as I informed you previously.

Moreover, Nippon Export and Investment Insurance, or NEXI, is scheduled to announce today that if the latest tariff measures are applied to exports from Japan to the United States, that would constitute grounds for the payment of insurance benefits.

In any case, METI will take necessary actions firmly while sufficiently examining the effects on Japanese companies.

Imports of U.S.-produced LNG

Q: President Trump mentioned a possible expansion of natural gas imports at the Japan-U.S. summit meeting. He also referred to a Japan-U.S. joint project in Alaska. What is your reaction to President Trump’s intentions and what kind of response is being considered by the government?

A: At the latest Japan-U.S. summit meeting, it was confirmed that the two countries will cooperate in ways that are mutually beneficial to both sides, including in increasing LNG exports to Japan. I understand that this will contribute to the strengthening of Japan’s energy security. Japan is already importing more than five million tons of LNG annually from the United States, but I assume that the public and private sectors will consider this matter while bearing in mind economic feasibility, the timing of the start of supply, and the supply volume, among other matters.

Regarding the LNG project in Alaska, it is necessary to carefully consult relevant people in the United States about prospects for pipeline construction and the details of this project. First of all, it is necessary for private-sector Japanese and U.S. business operators to discuss points of debate, such as mutual benefits for Japan and the United States, so METI will develop a necessary environment for this to happen.

Business integration of Honda and Nissan

Q: Tomorrow, Honda and Nissan will announce their financial results. Now that the two companies have discontinued their integration plan, what is your reaction to that? Also, in particular, Nissan’s business is in a critical state. What is your view on the need for progress in industrial reorganization to respond to the shift to EVs?

A: I am aware of the media reports, and I am keeping a close watch over the course of the two countries’ negotiations. My understanding is that as of now, the two companies have not made formal announcements, so I will refrain from making comments here.

In any case, as I mentioned on a previous occasion, given the severe situation the automobile industry is in, my reaction to the reorganization is that I am still completely in the dark about it. What I said previously is that this issue has now come up at a time when various forms of partnership have been considered by individual companies in individual industries while a committee has been established in Keidanren. Given the global trend, I hope that the Japanese automobile industry will continue to develop in the future.