Press Conference by Minister Muto (Excerpt)

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

10:16 to 10:29 a.m.
Tuesday, July 29, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Actions to address U.S. tariff measures

Q: Regarding the agreement reached in the Japan-U.S. tariff negotiations, I would like to　once again ask you about your perception of this matter.

A: Regarding the latest agreement between Japan and the U.S, I believe that it has been reached in a way that is consistent with the national interests of both Japan and the U.S, while protecting what needs to be protected. For example, I understand that the Japan’s three major economic organizations of Japan have released positive statements regarding the agreement, and that individual industries such as the automobile industry have also done so. What will be important from now on is for both Japan and the U.S. to work to implement the agreement, and we are strongly urging the U.S. to take necessary measures, such as issuing an Executive Order to promptly reduce tariffs, with the deadline of Friday, August 1st in mind. Regarding the impact on domestic industries, there are industries such as automobiles where exports to the U.S. have already begun to decline.

In addition, following the latest agreement, its impact on some industries will likely become apparent in the future. At the sixth meeting of the Ministry of Economy, Trade and Industry (METI)'s Task Force, held on July 25th last week, I instructed the administrative staff to continue to take a proactive approach to assessing the impact, utilizing push-type surveys. We will continue to assess the impact on domestic industries and employment, and will implement additional measures as necessary, without hesitation and without fail.

Impact of reciprocal tariffs on various industries

Q: One thing I would like to ask about the current Japan-U.S. tariff negotiations is the reciprocal tariffs. It has now been decided that the rate will be an across-the-board 15%. When looking at this by product, there are naturally some items for which the tariff rate will increase to 15%, while there are also items for which higher tariffs have already been imposed and will remain the same. Given this, I believe the impact on domestic industries will be mixed, or will vary from product to product. However, I would like to know if there are any items that you believe will be particularly affected by the reciprocal tariffs, or that will have a large impact on domestic industries.

A: There may be some particular industries impacted by the tariff rate, but as I mentioned earlier, since April this year we have been gathering information on the impact on each industry through the proactive approach I mentioned earlier. We are also listening to various opinions regarding areas where an additional 10% reciprocal tariff has been imposed. For example, in the construction machinery industry, there are concerns about whether price pass-through will be possible, including along the supply chain, or in the food industry, there are concerns that future price hikes will cause consumer disengagement.　Regarding the impact of the tariff rate now agreed upon, we would like to continue gathering detailed information on each industry, including those for which concerns were raised at the time of the 10% reciprocal tariff. This will also be the case after August 1st, but as I said earlier, we will consider without hesitation and without fail any additional measures if necessary, taking into account realities on the ground.

Alaska LNG project

Q: I would like to ask you about the Alaska LNG project. I believe that the agreement reached in the Japan-U.S. tariff negotiations includes a statement indicating that that this project will be considered. Additionally, I believe the materials released by the White House also include content suggesting the exploration of new contracts in connection with this project. I would like to know about the Government of Japan’s future schedule for this project and the framework within which it will consider this matter.

A: I am aware through recent media coverage that the LNG topic has resurfaced. While I will refrain from making comments on President Trump's remarks, I recognize that the supply of highly competitive LNG from Alaska, which is in close proximity to Japan, will contribute to diversifying supply sources. For this reason, regarding the Alaska LNG project, we are continuing to hold close discussions with U.S. officials on the economic viability, a forecast for starting production, and the form of cooperation, in order to realize offtake in a way that benefits both Japan and the U.S.

METI intends to continue making progress on the efforts that are necessary to ensure a stable supply of LNG.

U.S.–the European Union (EU) agreement on the U.S. tariff policy

Q: I would like to ask you about the agreement between the U.S. and the EU. The U.S. side has released a fact sheet announcing that 15% tariffs will be imposed not only on automobiles but also on semiconductors and pharmaceuticals. Regarding the Japan-U.S. agreement, the U.S. mentioned that Japan will not be treated less favorably than other trading partners, but is it correct to understand that the content of the U.S.-EU agreement on the 15% tariffs will also be applied to Japan in the future?

A: I would like to refrain from making comments on individual discussions between the U.S. and third countries. In addition, I believe that the agreement reached between Japan and the U.S. and between the U.S. and EU will reduce uncertainty surrounding tariffs involving the U.S. to a certain extent, and will also lead to a reduction in risks of downward pressure on the Japanese economy and the global economy. Regarding the question whether Japan will be treated less favorably than other trading partners of the U.S., I believe this is a matter I need to inquire further into, but I believe that is correct to understand that Japan will not be treated less favorably than other trading partners of the U.S.