Press Conference by Minister Muto (Excerpt)

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

10:59 to 11:09 a.m.
Friday, August 8, 2025
Press Conference Room, METI Main Building

Opening Remarks

Official participation in Expo 2027 Belgrade

At today’s Cabinet meeting, the Cabinet endorsed Japan’s official participation in Expo 2027 Belgrade, which will be held in Belgrade, the Republic of Serbia, under the theme “Play for Humanity.” The Ministry of Economy, Trade and Industry (METI) will proceed with preparations for the event in cooperation with the Ministry of Education, Culture, Sports, Science and Technology with the aim of enhancing understanding of Japan and passing on the achievements of Expo 2025 Osaka, Kansai, Japan.

Question-and-Answer Session

Actions to address the U.S. tariff policy

Q: The 15% reciprocal tariff imposed by the U.S. Trump Administration came into effect on August 7. However, there has been a confusion over the additional 15% tariff having been imposed across the board, which is contrary to the Government of Japan’s explanation that the tariff rate of 15% would be imposed on items with a tariff rate below 15% but no additional tariff would be imposed on items with an existing tariff rate of 15% or higher. Regarding this point, Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization, who has met with U.S. ministers on visits to the United States, clarified in a press conference this morning that he confirmed with the Government of the United States that it would revise the Executive Order concerned and reimburse the overcharged amount retroactively to August 7, and concurrently with the revision, issue an Executive Order to reduce automobile tariffs. What is your view on this matter?

A: As Minister Akazawa explained in the press conference earlier, I understand that the U.S. side explained their response as you pointed out. My view is that the Government of Japan needs to continue to strongly urge the U.S. side in every possible way to take measures to revise the Executive Order concerning reciprocal tariffs and to issue an Executive Order to reduce tariffs on automobiles and automobile parts as promptly as possible.

In addition, with regard to the impact and measures in view of the Japan-U.S. agreement, Prime Minister Ishiba has instructed METI to visit regional areas and industry associations to provide detailed explanations and engage in dialogues intensively up to the end of August. Through this initiative, we hope to provide businesses concerned with meticulous information on the content of the agreement in a proactive manner, understand the impact of the tariffs, and further examine what additional measures are necessary.

U.S. tariffs on semiconductors

Q: The other day, President Trump reportedly indicated his intention to impose a 100% tariff on semiconductors unless they are manufactured, or are promised to be manufactured, in the United States. It has been agreed that Japan will not be treated less favorably than other trading partners, but given the recent situation where the Government of Japan had to urge a revision to rectify what seemed like a difference in recognition concerning the portion stacked on existing tariffs, some people doubt the certainty of Japan’s standing. In fact, the market seems to have been affected to a certain extent, as exemplified by the decline in semiconductor stock prices. Please share your thoughts regarding semiconductor tariffs in this regard.

A: I am aware of President Trump’s remarks that you mentioned. I will refrain from commenting on individual remarks made by U.S. government officials, but METI’s policy is to take appropriate actions while fully examining the specific details of the measures to be revealed, and their impact on Japan.

With regard to semiconductors, even if sector-specific tariffs are to be imposed under the latest Japan-U.S. agreement, Japan is not to be treated less favorably than other trading partners, as you just mentioned. I would like to refrain from making any comments as to whether Minister Akazawa discussed this matter at his most recent visit, but we would like to continue urging the steady implementation of the agreement while maintaining close communication between Japan and the United States on diverse levels.

U.S. tariffs on automobiles and automobile parts

Q: On the automobile tariff front, manufacturers have announced their financial results this week, and some of them presented their financial forecast on the presumption that tariffs would be reduced to 15% by the end of this month or the next month. A delay in the timing of tariff reduction to September or October will presumably affect related industries, including their supply chains. I would like to hear your views about the Government of Japan extending support to the entire supply chain and the thinking behind the initiative.

A: I am aware that Minister Akazawa, currently in the United States, has just reconfirmed with the U.S. side that the Government of the United States will issue an Executive Order to reduce tariffs on automobiles and automobiles parts, concurrently with measures to revise the Executive Order on reciprocal tariffs.

Given this, the 15% tariff rate will remain even if an agreement is to be reached as you just said. As I probably mentioned at the previous press conference, METI held a meeting on July 31 to exchange opinions with members of the automobile and auto parts industries, with the prime minister also attending, and received feedback suggesting that, although the agreement on a 15% tariff was commendable, its impact would by no means be small. We also received opinions referring to the necessity of maintaining the supply chains and requests for measures such as stimulating domestic demand.

In addition, as you just said, we have heard that almost all auto manufacturers have announced a decrease in their first quarter operating profits from the same period of the previous fiscal year due to the impact of tariffs, which has prompted us to recognize that the impact is becoming apparent. METI is currently providing the industry associations for the automobile and auto parts sectors, as well as individual companies concerned, with explanations on the details of the agreement and is furthering the exchange of views on the impact of tariffs. We will continue to strive to understand the impact and consider what additional measures are needed.