Press Conference by Minister Muto (Excerpt)

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

8:35 to 8:43 a.m.
Friday, March 14, 2025
In front of the elevator hall, 2nd floor, Annex to the House of Representatives

Opening Remarks

Bill for the Act for Partially Amending the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises

On Tuesday, March 11, during my visit to the U.S., a Cabinet Decision was made on the Act for Partially Amending the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises, on which the Ministry of Economy, Trade and Industry (METI) and the Japan Fair Trade Commission (JFTC) had held discussions.

The bill aims to improve the trading environment so as to encourage companies to carry out price pass-through throughout the supply chain, which is key to achieving wage increases that are higher than price increases. Specifically, it provides measures including the prohibition of price setting without appropriate negotiations and the promotion of necessary programs by municipalities. We will further ensure price pass-through and enhancement of fair-trade practices for SMEs through strengthening the enforcement of the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors, among other measures.

Question-and-Answer Session

Actions to address the U.S. measures for additional tariffs

Q: The day before yesterday, the U.S. decided to impose tariffs on steel and aluminum from Japan. You visited the U.S. to request that the country eliminate the tariffs imposed against Japan. Could you offer your views again on this result?

Also, at the press conference you held during your visit to the U.S., you mentioned that Japan will advance talks at the administrative level. Could you tell me the current state of such talks? In addition, the U.S. announced that it will start imposing tariffs on automobiles on April 2, and I understand that the impact on the Japanese automobile industry is expected to be significant. Could you comment on any measures to address this, if any?

A: Regarding the measures this time, Japan explained its concerns to the U.S. at various levels and requested that the U.S. remove Japan from the scope of the measures. It is therefore regrettable that the U.S. decided to impose additional tariffs without excluding Japan from the scope of the measures.

U.S. imports of steel and aluminum products from Japan do not have a negative impact on the country’s security. On the contrary, high-quality Japanese products are difficult to replace and are essential for the U.S. in its strengthening of the competitiveness of its manufacturing industry. Accordingly, it is true that such Japanese products have been contributing significantly to U.S. industry and employment.

I explained these points during my visit to the U.S., and I understand that we have gained a certain level of understanding from the U.S. side.

Concerning the future prospects, Japan and the U.S. confirmed that we will continue to hold close talks on approaches to developing a win-win relationship in terms of the national interests of both countries based on the understanding of the respective positions.

As you mentioned, Japan and the U.S. will first hold talks at the administrative level. I believe that we should move forward with these talks.

We are currently making arrangements with the U.S. side about the expected schedule of the future talks.

Actions to address additional tariffs by the U.S. on steel and aluminum imports

Q: I would like to ask you about the U.S. tariffs against steel and aluminum imports, which you mentioned now. Europe and Canada announced that they would impose retaliatory measures against the U.S., and, in response, the U.S. also shared its intention to take further retaliatory measures against them. You mentioned that Japan will continue to hold talks with the U.S. side. Could you comment on whether Japan has any plans to file this matter with the WTO or to take retaliatory measures? Also, could you offer your views on the current situation where countries are involved in a retaliatory war against the U.S.?

A: I believe that the U.S. government’s broad tariff measures may have a significant impact not only on the economic relationship between Japan and the U.S. but also on the global economy, namely the multilateral trading system as a whole, as you mentioned. We will continue to take necessary actions to address this, including holding talks with the U.S.

The specific approaches to such talks and topics will be discussed at the administrative level between the two countries, as I mentioned earlier. In addition, METI will appropriately address this, while collaborating with the related ministries and agencies.

Actions to address the U.S. additional tariff measures

Q: You have reiterated that Japan will continue to hold talks on the U.S. tariffs at the administrative level. Will Japan, for example, request that the U.S. once again exclude Japan from the application of its automobile tariffs and reciprocal tariffs?

A: Of course, concerning the matters related to Japanese automobiles in that sense, we should move forward with talks at the administrative level in various forms, including our request to the U.S. to remove Japan from the application of automobile tariffs, given the tariffs are to be started on April 2.