Press Conference by Minister Muto (Excerpt)

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

10:19 to 10:33 a.m.
Friday, April 25, 2025
Press Conference Room, METI Main Building

Opening Remarks

Scheduled visit to Malaysia and Thailand

If circumstances permit, I will be visiting Malaysia and Thailand from April 27 through 30.

In Malaysia, which is the Chair of the Association of Southeast Asian Nations (ASEAN) for 2025, we will exchange views on the reinforcement of industrial cooperation across the entire ASEAN region, Japan-Malaysia collaboration toward co-hosting the Asia Zero Emission Community (AZEC) Ministerial Meeting, and bilateral energy cooperation between the two countries.

In Thailand, we will establish the Energy and Industry Dialogue with its Deputy Prime Minister in charge of economic affairs, and discuss the enhancement of automobile production in the country and its export competitiveness.

Due to the U.S. tariff measures, as well as the ensuing tit-for-tat retaliatory measures, the global economy has become even more opaque. Against this backdrop, it is critically important for Japan to collaborate with Southeast Asia, where we have close supply chain ties. Through my visit to Malaysia and Thailand, I hope to further strengthen cooperation with Southeast Asia.

Fixed-amount fuel price reduction measures

In an on-the-move interview at the Prime Minister’s Office this week, Prime Minister Ishiba announced the fixed-amount price reduction of fuel oil. I will report to you further regarding this, and ask for your cooperation regarding this matter.

With regard to gasoline, we will reduce the price by 10 yen per liter, but the subsidy will be increased in incremental phases to avoid causing any confusion in distribution. Therefore, the retail price of gasoline will not immediately drop by 10 yen on May 22.

As we need to take into account the stocks held by gas stations, it will take a certain amount of time for the subsidy to be reflected in the retail price. We need consumers and business operators to accurately understand this to prevent long queues and fuel shortages at gas stations. To avoid causing such confusion, we will take solid steps to ensure that the public is thoroughly informed of the situation, with your kind cooperation.

Specifically, we will create a dedicated website, send out information through the X account of the Ministry of Economy, Trade and Industry (METI), and distribute stickers and posters to gas stations nationwide, asking them to post them where customers can see them.

We also appreciate cooperation and advice from the media organizations.

 

Question-and-Answer Session

Actions to address the U.S. tariff policy

Q: From the end of this month, Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization is scheduled to visit the United States to negotiate with U.S. Secretary of the Treasury Scott Bessent. My first question is: What are your expectations for the negotiation? Also, given that the National Governors' Association (NGA) made an urgent request concerning tariffs the other day, my second question is: How will you make use of this request?

A: It is my understanding that the next round of Japan-U.S. talks is being scheduled by the end of this month in light of the outcome of the previous discussion, but that the date has not yet been finalized. I have an expectation that another frank and constructive discussion will be held toward an early agreement.

On April 22, METI received a request from Mr. Tasso Takuya, Governor of Iwate Prefecture on behalf of the NGA, to minimize the impact of tariffs on local industries. Mr. Kato Akiyoshi, Parliamentary Vice-Minister of Economy, Trade and Industry, met the governor and received the request on behalf of METI.

At a meeting of the Comprehensive Response Headquarters for U.S. Tariff Measures held just now, a decision was made on an emergency response package. METI will work on providing consultation services and relevant information and extend cash flow support to Small and Medium-sized Enterprises (SMEs) subject to the impacts of tariffs.

METI intends to continue with its effort to understand how entities at the forefront will be affected, including accepting requests from various organizations, to take additional measures in line with the actual situation.

New investments in the United States by Japanese automobile manufacturers

Q: Yesterday, Toyota Motor Corporation announced that it will make additional investment in its U.S. plant. Furthermore, Honda Motor Co., Ltd. and Nissan Motor Co., Ltd. are seeking to partially shift their production to the United States. What is your frank view on such announcements of investment in and production relocation to the United States?

A: I would like to refrain from making any comments on the moves of individual companies, as I don’t think it would be appropriate. Such corporate moves by Toyota, Nissan and other auto manufacturers have always been an integral part of their manufacturing base strategy, and not necessarily the result of President Trump’s remarks. I believe that how these moves will be implemented depends on the perspectives of the respective auto manufacturers.

My areas of interest include subtle aspects such as how supply chains will change within the United States as production bases relocate. In particular, when auto manufacturers shift their bases from Japan to the United States, the issue of tariffs will also arise for supply chains. While collecting a broad range of information, we intend to keep a close eye on the automobile industry, including the upcoming relocation to the United States.