Press Conference by Minister Muto (Excerpt)

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

10:36 to 10:43 a.m.
Tuesday, July 8, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Japan-U.S. tariff negotiations

Q: President Trump announced in his letter that the United States will impose 25% tariffs on imports from Japan starting August 1. The rate is higher than 24%, which had been indicated to Japan as the rate for tariffs including reciprocal tariffs. What is your perception of this announcement, the impact of the tariffs on Japan’s domestic industries, and the support that the Government of Japan needs to provide to help the industries deal with the impact?

A: On July 7, U.S. time, the letter announcing that the U.S. government will impose 25% tariffs on all imports from Japan starting August 1 was revealed to the public and I am aware that the Government of Japan has already received the letter. Japan has been holding serious and sincere tariff talks with the U.S., and it is quite regrettable that the U.S. side has announced that it will raise the tariff rate.

The Ministry of Economy, Trade and Industry (METI) held five meetings of the Task Force for U.S. Tariffs, including the last meeting held on June 26, with a view to assessing the impact of the tariffs on the domestic industries. The export of automobiles from Japan to the United States has already been decreasing in terms of both export value and export quantity, and in the push-type surveys conducted by the Ministry, concerns have been raised about the impact, including a future decrease in sales.

In line with what the Prime Minister said at the meeting of the Comprehensive Response Headquarters for U.S. Tariff Measures held at the Prime Minister’s Office this morning, METI will continue to monitor the impact of the tariffs on the domestic industries and employment to implement all necessary measures without hesitation and without fail. The Government of Japan will continue to make a concerted and priority effort to reach a consensus in Japan-U.S. tariff negotiations, while protecting Japan’s national interests.

Q: I would like to ask another question about tariffs. In his letter, President Trump tells Japan to open its markets. At METI, the Trade Policy Bureau has been playing a central role in tariff negotiations with the U.S. side. Going forward, based on what policy will you continue negotiations with the U.S. side to avoid the imposition of 25% reciprocal tariffs on August 1? Regarding the tariff talks, the Government of Japan sent Minister Akazawa to the United States on seven occasions, but the tariffs have not yet been lifted or lowered. What is your view on those past negotiations?

A: I am well aware that both sides have been proactively continuing serious and sincere talks. Mr.  Akazawa Ryosei, Minister in Charge of Economic Revitalization, visited the United States to represent Japan in the talks on seven occasions, but issues to be solved between the countries remain, and I feel very sorry to hear that our two countries have not yet reached a consensus.

Both Japan and the United States need to protect their national interests, and it is difficult for either of the countries to come to a compromise when it comes to national interests. For the Japanese side, the interests of the core automobile industry are essential to the protection of its national interests, and I think Japan will continue to search for ways to come to an agreement with the U.S. side while protecting its national interests. I will refrain from making comments on further details of the talks, because of their diplomatic nature. These are my answers to your question.

Partnership between Nissan Motor and Hon Hai Precision Industry in the EV field

Q: It is said that Nissan Motor is considering forming a partnership with Hon Hai Precision Industry of Taiwan in the EV field and that the Taiwanese company will manufacture EVs in Nissan’s Oppama Plant in Kanagawa Prefecture, which is said to be under consideration for closure. Some expect that if the partnership is actually formed, the plant operation rate will improve and jobs will be retained, but others are taking more cautious view of the partnership and expressing concerns about economic security. Regarding this, could you share your view as representative of METI and as the Minister of Economy, Trade and Industry?

A: I am aware of the news that you have mentioned. However, according to Nissan, the company has not made any such announcement. The automaker has explained that it is carrying out evaluations of the integration and closure of its global production bases, but except for the two overseas bases for which it has already made an announcement, no final decisions have been made.

At any rate, I will refrain from making any further comments on the management decisions to be made by a private company. Nissan is reviewing its business activities, and I will continue to pay attention to future developments involving the company.

Japan-U.S. tariff negotiations

Q: With regard to Japan-U.S. tariff negotiations, the newly announced tariff rate is higher than initially announced. Are there any additional support measures that can be taken for domestic industries facing the effects of the tariffs? Will any specific measures be implemented?

A: In Japan, as I have already said, we held five meetings of the Task Force for U.S. Tariffs and have been constantly monitoring the situation through measures such as conducting push-type surveys. We will implement necessary measures without hesitation. We will monitor the actual situation regarding employment by the domestic industries. We will assess the impact of the tariffs and implement measures as necessary.

I will refrain from talking about specific details today, but we will press forward with measures while steadily monitoring the situation.