Press Conference by Minister Muto (Excerpt)

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

9:50 to 10:02 a.m.
Tuesday, April 1, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Actions to address additional U.S. tariffs on automobiles

Q: I have two questions I would like to ask you. The United States is about to start imposing additional tariffs on automobile imports. What is the current state of discussions with the U.S. side and how do you perceive the situation?

Also, you have stated earlier that domestic measures will be considered in response to the tariff policy. What is the current progress in this regard?

A: With regard to your question about the tariffs on automobiles, in the administrative level deliberation on March 27, we again expressed to the U.S. side our extreme regret that Japan was announced as being subject to the tariffs, and we are strongly requesting that the United States should exclude Japan. By taking advantage of all kinds of opportunities, we will continue to firmly request that Japan be exempt from the additional auto tariffs. We need to continue discussing this matter with the United States, and intend to keep working on advancing communication with it.

As for our measures in Japan, we are considering providing domestic companies with cash flow support. We hope to announce our measures in concrete terms at an appropriate timing.

Actions to address additional U.S. tariffs on automobiles and reciprocal tariffs imposed by the United States

Q: There are two questions I would like to ask. With regard to the domestic survey and support you mentioned, when do you think the appropriate timing will be? I would appreciate it if you could provide a rough schedule as to when this will be at the latest.

Now for the other question: With the United States expected to start executing the reciprocal tariffs on April 2, how do you perceive the U.S. introduction of the tariffs, where do the current discussions stand, and how will Japanese government respond going forward? Thank you.

A: With regard to reciprocal tariffs, during my visit to the United States last month, and in the administrative level deliberations on March 27 with the U.S. side, we requested that Japan should not be subject to the tariffs. Details of the U.S. measures are unclear at this point in time, however, when details are announced, we will first need to closely examine their impact on Japan while performing an in-depth analysis. Subsequently, we intend to urge the United States to exclude Japan from the scope of the measures. We will take necessary actions while examining the impact on Japan and collaborating with the relevant ministries and agencies.

Your first question was about Japan’s internal measures. Whether it be measures to address tariffs on automobiles or reciprocal tariffs, we are currently considering when we should offer cash flow support to domestic companies at the latest, among other measures. The tariffs have not been executed yet, so we will continue exploring our measures in collaboration with the relevant ministries.

Additional financial assistance for Rapidus

Q: I would like to ask you about the government’s additional support for Rapidus. Yesterday, it was announced that the Ministry of Economy, Trade and Industry would provide Rapidus with 802.5 billion yen in additional support. The total support for the company will reach 1722.5 billion yen. An additional 100.0 billion yen is also planned to be invested this fiscal year. Please tell us again about the significance of supporting Rapidus. In the Diet deliberations, there have been voices questioning the validity of providing massive amounts of support to companies with no track record of production. How do you perceive such views?

A: I have also seen media coverage of the additional support that was decided yesterday. We believe that the support provided to Rapidus was justifiable in light of the company’s product development status, which a committee of external experts assessed as progressing steadily, and in consideration of its planned FY2025 R&D, which includes the launch of a pilot production line and the creation of a design environment for customers.

We have also received various questions during Diet deliberations. Next-generation semiconductors are indeed indispensable for automated driving, generative AI, etc., but mass production has not been achieved yet, even by Rapidus’s competitors, which shows that the company is in need of stronger support by the government. Meanwhile, Rapidus has been making steady progress in establishing mass production technologies and acquiring customers.

Our decisions to offer ongoing support have been and will be made on the back of external experts’ assessment of the company’s progress. We have been striving to help people understand why support is justifiable by offering the aforementioned detailed explanation. We will continue making such efforts.

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

Q: I would like to ask about Nippon Steel. It was reported in certain U.S. media that Vice Chairman Takahiro Mori of Nippon Steel was scheduled to meet with U.S. Secretary of Commerce Howard Lutnick on April 1, local time. How did you perceive this news, including how you anticipate the discussions to progress?

A: I am aware of the media coverage. I would like to refrain from making any comments on a private company’s management matter. In any case, I believe that Nippon Steel’s planned investment in U.S. Steel will be considered and coordinated by relevant parties in the private sector. The Government of Japan will work to promote communication between the relevant parties as necessary.