Press Conference by Minister Muto (Excerpt)

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

11:13 – 11:25 a.m.
Friday, September 5, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Actions to address the U.S. tariff policy

Q: I would like to ask you about U.S. tariff measures. President Trump signed an Executive Order that includes reducing tariffs on automobiles to 15%. I would like to know your view on this matter and future response.

A: I'm sure you've all seen the news coverage of the matter. First of all, I would like to express my sincere gratitude to Mr. Akazawa Ryosei, Minister in Charge of Economic Revitalization, for all his hard work. Today, President Trump signed an Executive Order regarding tariff reduction measures for Japan, which stipulates amendments to the Executive Order regarding reciprocal tariffs, as well as the reduction of tariffs on automobiles and automobile parts. Furthermore, no reciprocal or sector-specific tariffs will be imposed on aircraft and aircraft parts. I see this as the steady implementation by the U.S. side of the Japan-U.S. agreement of July 22 and welcome the Executive Order. In addition, at the same time as signing the Executive Order, and in response to a request from the United States, we prepared a memorandum of understanding to confirm our common understanding on the $550 billion investment initiative, and a joint statement to reaffirm the commitments of both countries to the Japan-U.S. agreement. The joint statement reaffirms the U.S. intention that even if sector-specific tariffs are to be imposed in the future on semiconductors and pharmaceuticals, Japan will not be treated less favorably than other third countries or regions such as the EU, and this is clearly stated.

The Government of Japan will continue to strive to promptly implement the agreement with the U.S. side in good faith. However, as a certain level of tariff rates will remain in effect even after the implementation of the latest Executive Order, we will continue, as measures going forward, to provide the latest information, including the development this time, in cooperation with the Japan External Trade Organization (JETRO) and other relevant organizations. In METI’s budgetary request and tax system reform request for next fiscal year, we included budget and tax systems to deal with the impact of U.S. tariff measures. We will continue to make preparations so that we can respond promptly if flexible responses are required.

Q: The Japan-U.S. agreement also includes a statement regarding the Alaska LNG project. I would like to ask your understanding about this.

A: The latest document includes measures to be carried out by Japan such as the purchase of bioethanol and increase in the procurement of energy, including the LNG you just mentioned, and semiconductors from the U.S., in light of the agreement of July 22 reached between Japan and the U.S., and from the perspective of expanding trade. I understand that these measures are specifically stipulated in the document. As I have said before, an increase in the supply of highly competitive U.S. LNG has the potential to contribute to diversifying supply sources. I believe that this will also benefit Japan in terms of securing a stable supply of necessary materials. Regarding the Alaska LNG project, we are continuing to hold close discussions on the economic viability and a forecast for starting production in order to realize so-called long-term offtake in a way that benefits both Japan and the U.S. I believe that METI will continue these discussions.

Q: I think there has been some concern due to the lack of a written agreement until now. I also think that an important focus has been on what will happen to the 15% automobile tariff and when it will be implemented. Now that a document has been created and the contents of the agreement are properly signed in an Executive Order, what do you think as the Minister of Economy, Trade and Industry are the most significant aspects in the latest development, and what is your view on the fact that a document has been finalized?

A: Minister Akazawa has taken the lead in getting us to this point, but METI has also been coordinating with the U.S., with the highest priority being to ensure that the U.S. side reduces tariffs as soon as possible. As a result, the U.S. signed an Executive Order, which had been requested by the Government of Japan, and at the same time the latest joint statement was created in response to the request of the U.S., thus, the two countries were able to reach an agreement. I believe this is significant from the perspective of providing a thorough explanation to the people to gain wide understanding from them. In addition, as I mentioned earlier, as part of the implementation of the agreement with the U.S. side, we have been proceeding with coordination with the U.S. toward the implementation of Japan’s investment in the U.S., and we undertook coordination during the process of preparing the memorandum of understanding. We will continue to provide explanations about the matter to the public. In that sense, I believe that the significance of these documents is a step forward, as a measure for us to continue to provide explanations in gaining understanding from the public.