Press Conference by Minister Muto (Excerpt)

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

8:35 to 8:41 a.m.
Friday, May 9, 2025
In front of the elevator hall, 2nd floor, Annex to the House of Representatives

Opening Remarks

GENIAC*-PRIZE launched

The GENIAC-PRIZE, a prize money program aimed to promote the development and use of generative AI, has kicked off today. In pursuit of the social implementation of generative AI, the program solicits generative AI services developed in consideration of concrete needs in the manufacturing and service industries, the government sector, and so forth, where the use of generative AI is expected to increase productivity. Details will be shared by the administrative staff later.

*Generative AI Accelerator Challenge

Question-and-Answer Session

Actions to address the U.S. tariff policy

Q: I would like to ask you about the U.S. tariff measures. During the recent long vacation, Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization, visited the United States for his second round of negotiations, but I have the impression that there still remains a significant gap between the positions of Japan and the United States. On May 3, tariffs on auto parts came into effect in addition to automobile tariffs.

Minister Muto, I understand you visited Malaysia and Thailand during the recent vacation to talk to Japanese companies operating there. Taking into account the comments you heard on this occasion, how do you perceive the impact of the U.S. tariff measures on companies and industries? Also, are you thinking of taking additional countermeasures?

A: I understand that the next round of ministerial talks with the United States is being arranged in or after mid-May. I expect that frank and constructive discussions will be held toward reaching a mutually beneficial agreement at the earliest possible timing.

When I exchanged views upon my visit to Thailand and Malaysia, I heard comments referring to the impact of tariffs when exporting goods to the United States and concerns about the consequences of an economic slowdown affecting countries and regions.

As you said, tariffs on auto parts came into effect on May 3. We intend to listen carefully to the voices of companies at the forefront of this situation with regard to the impact of tariffs on the automobile and other industries.

As for actions to be taken for companies subject to the impact of tariffs, the Government of Japan’s Comprehensive Response Headquarters for U.S. Tariff Measures decided at the end of April to provide an emergency response package. The Ministry of Economy, Trade and Industry (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.

We would like to continue with our effort to understand the impact on entities at the forefront of the situation while taking additional measures in line with the actual circumstances.

Agreement between the United States and the United Kingdom on tariff policies

Q: Last night, Japan time, the governments of the United States and the United Kingdom announced that they had reached an agreement in their tariff negotiations. What is your view on this? How will this affect Japan’s negotiations with the United States and what concerns do you have, if any?

A: I am aware of the announcement. Although I would like to refrain from making any comments on an agreement between other countries, I understand that the leaders of Japan and the United States are aligned in their intention to hold frank and constructive talks with the aim of reaching an agreement at the earliest possible timing, as I said, and to make an announcement.

In view of the outcome of previous talks, the Government of Japan will continue to make an all-out concerted effort giving top priority to this matter.

Q: I have an additional question regarding the U.S.-U.K. agreement. A decision was taken to lower the tariff on imports of U.K. automobiles to 10% within a set quota equivalent to the number of cars the United Kingdom exports to the United States. What is your assessment of this agreement, and do you think this method of setting a low-tariff import quota will serve as a reference in Japan’s negotiations with the United States?

A: I am aware that The Yomiuri Shimbun featured the news as the top article on its front page. We would like to closely examine the details of the agreement first before discerning whether there are any points that can be referenced. As I said earlier, we will work hard and steadily to reach an agreement at an early timing.

Q: In relation to the previous question, could you share your view on whether the Government of Japan will change its stance of pursuing the complete elimination of automobile tariffs, or aim for a Japan-U.S. agreement on a low-tariff quota, similar to what was mentioned earlier?

A: As of today, the point is not whether a 10% tariff is appropriate, for example. The Government of Japan cannot decide whether or not to change its stance until the details of the U.S.-U.K. agreement are carefully examined. Basically, I understand that the Government of Japan has not changed its course of action requesting the elimination of the 25% tariff at this point.