Press Conference by Minister Muto (Excerpt)

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

12:06 to 12:13 p.m.
Tuesday, August 5, 2025
Press Conference Room, METI Main Building

Opening Remarks

Publication of an order-placing companies list regarding Price Negotiation Promotion Month

Today, we will publish a list of order-placing companies regarding the Price Negotiation Promotion Month held in March this year. Although there are signs of improvement in the situation regarding price negotiations and price pass-throughs, some companies and local governments are still receiving unfavorable assessments. In addition, in light of the ban on payment by promissory notes beginning next year, we investigated the current state of payment conditions and found that some companies have received the lowest rating.

We would like to ask all order-placing companies on the list to take the assessment given by their counterparts seriously in their transactions and make further efforts to improve the situation. We would also like to ask companies and institutions that are not listed to cooperate in promoting fair trade across their entire supply chains.

The Ministry of Economy, Trade and Industry will persistently implement measures to ensure fair transaction practices, including raising the awareness of the “Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields,” which will be enforced next January, and the “Act on the Promotion of Subcontracting Small and Medium-sized Enterprises.”

The administrative staff will provide a detailed briefing later.

Question-and-Answer Session

Actions to address U.S. tariff measures

Q: I would like to ask you two questions. This is the first one. First, Minister Akazawa will be visiting the U.S. starting today. What are the aims of the Government of Japan? What does METI want to achieve?

Second, a certain number of tariff rates will remain in place after the Japan-U.S. agreement, but what will be the specific impact of such tariff rates? Also, when do you plan to present measures in response to the impact? Thank you.

A: I am aware of the media report regarding the visit to the U.S. by Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization, but I have heard that he is currently seeking approval from the Diet. Therefore, I will refrain from commenting on the matter in my capacity.

Regarding the question of what future support measures METI is considering, we will take every available opportunity to continue to urge the U.S. side to take prompt measures to steadily implement the latest agreement, including reducing tariffs on automobiles and automobile parts. We have 1,000 Consultation Counters on U.S. Tariff Measures for Japanese Companies across the country, and as of August 1, the cumulative number of consultations received was 5,086, with 933 consultations received in the one month since July. In terms of the breakdown of the consultations, as I explained last time, approximately 50% of the consultations relate to the content of tariff measures, and approximately 30% are about cash flow support. Through the consultation desks and push-type information gathering, I have heard concerns from businesses that if tariffs reduce domestic demand and sales of Japanese products in the U.S., it will strain the profits of Japanese companies and lead to reducing production, which will eventually lead to the reduction of orders to small and medium-sized enterprises in supply chains.

Last week, we held a meeting to exchange opinions with the automobile and automobile parts industries, and in August, as instructed by the Prime Minister, we will also hold intensive exchanges of opinions with other industries to assess the impact of the latest Japan-U.S. agreement. At that point, if any additional measures are necessary, we will implement them without hesitation and without fail.

Q: I would like to ask one more question regarding tariffs. The Government of Japan announced that it had agreed on a reciprocal tariff of 15%, including the MFN tariff rates. However, according to the U.S. materials released on July 31, a reciprocal tariff of 15%, including the MFN tariff rates, will apply only to the EU. In your previous press conference last week, you stated that you would confirm this with the U.S. government. Could you tell us whether you have since confirmed the facts?

A: Yes, thank you. We have begun communicating with the U.S. side to confirm the contents of the Executive Order regarding reciprocal tariffs announced by the U.S. government. While doing that, on Thursday, August 7, we were able to confirm with the U.S. side that there is no discrepancy in understanding between Japan and the U.S. regarding the reciprocal tariffs that will be imposed from then on, with the existing tariff rates, including the so-called MFN tariff rates, set at 15%, excluding items where the existing tariff rates exceed 15%. We will continue to communicate with and urge the U.S. to take prompt steps to implement the latest agreement.