Press Conference by Minister Akazawa (Excerpt)

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

13:25-13:58 p.m.
Wednesday, October 22, 2025
Press Conference Room, METI Main Building

Opening Remarks

Upon assuming office as minister

I was appointed by Prime Minister Takaichi Sanae to serve as the Minister of Economy, Trade and Industry, the Minister in charge of the Response to the Economic Impact caused by the Nuclear Accident, and the Minister of State for the Nuclear Damage Compensation and Decommissioning Facilitation Corporation. I was also appointed to serve as the Minister for Green Transformation, the Minister in charge of Industrial Competitiveness, and the Minister in charge of International Exposition. Prime Minister Takaichi instructed me to undertake the following: (i) to promote the reconstruction of Fukushima, including the decommissioning of Tokyo Electric Power’s Fukushima Daiichi Nuclear Power Station; (ii) to achieve strong growth in the Japanese economy under the concept of "responsible and active fiscal spending"; (iii) to develop domestic supply chains for semiconductors and AI; (iv) to promote domestic investments to achieve wage hikes; (v) to work in cooperation with the Minister for Foreign Affairs to implement the Japan-U.S. agreement on tariff measures; (vi) to support the business restructuring, productivity improvement, and business reorganization of small and medium enterprises; (vii) to promote efforts for ensuring fair transactions and price pass-throughs in public procurement; and (viii) to take all possible measures to ensure a stable supply of energy, which is the foundation of the people's livelihoods and economic activity. In particular, I believe that enabling small and medium enterprises to enhance productivity and secure resources for wage hikes is extremely important to Japan’s economic growth. I would like to fully support the growth and productivity improvement of small and medium enterprises that are actively engaged in business operations. In addition, as I believe you are all aware, the Ministry of Economy, Trade and Industry (METI) is facing a mountain of challenges. I will utilize my experience to date and, taking into account the instructions of the Prime Minister, I will do my utmost to fulfill my job duties.

Question-and-Answer Session

Appointed as a Cabinet minister, continuing from the Ishiba administration

Q: You were appointed as a Cabinet minister, continuing from the Ishiba administration. How do you feel about being appointed as a Cabinet minister by Prime Minister Takaichi?

A: First, I was appointed to be the Minister of Economy, Trade and Industry under the Takaichi administration, continuing as a Cabinet member after serving as the Minister in charge of Economic Revitalization under the Ishiba administration. Needless to say, I am truly humbled and feel a renewed sense of resolve as I take on this important role. I understand that Prime Minister Takaichi has high expectations for me to further promote economic and industrial policies, taking advantage of my experience in economic revitalization, including the Japan-U.S. tariff negotiations, in which I have been involved. I’m not sure if I should say this, but I believe the Prime Minister also indicated in her instructions that she expects me to take on some of the more demanding tasks. Keeping her instructions in mind, I will do my best to meet her expectations. I intend to make the most of my experience and will do my utmost to fulfill my job duties as a member of the Takaichi administration in order to meet the expectations of the people.

Aspirations as the Minister of Economy, Trade and Industry

Q: I think my question may overlap with your opening remarks, but I think METI covers a wide range of very important policies. I believe that all policies are important, but I would like to ask you as the Minister of Economy, Trade and Industry what policies you would particularly like to work on and what your aspirations are.

A: First, as instructed by the Prime Minister, I would like to contribute to the formulation of an economic growth strategy in order to achieve strong growth in the Japanese economy. I believe the Prime Minister has already said in a press conference that she will set up an economic growth strategy council to formulate such a strategy. I would like to contribute to that as much as I can. In particular, I am very keen to stimulate private investment through domestic development of supply chains for semiconductors and AI, and through tax reforms, as well as support for productivity improvements and business restructuring of small and medium enterprises. Regarding an ongoing issue from the previous administration, I intend to create an environment in which wage increases can exceed price increases. Furthermore, in the area of trade, we will steadily implement the Japan-U.S. agreement and further strengthen our relationship with the United States. Furthermore, I would like to work with like-minded countries to expand a free and fair economic zone and strengthen the resilience of supply chains. Currently, as the United States, the world’s leading power, seeks to reshape the world order and revise the rules of diplomacy and negotiation, we must respond decisively to these turbulent currents to ensure that Japan’s economy remains resilient and does not falter. At the same time, free trade and the rule of law are the very foundations of Japan’s international stance. With Minister for Foreign Affairs Motegi’s guidance, I intend to vigorously pursue efforts on both fronts through what might be called a hybrid diplomatic approach. In terms of energy policy, as demand for electricity increases, we will make maximum use of renewable energy and nuclear power, with safety as a fundamental premise, to secure the necessary decarbonized power sources, and aim to simultaneously achieve stable energy supplies, economic growth, and decarbonization. And finally, though it is by no means the last thing on my mind, the reconstruction of Fukushima remains a top priority, and I am determined to give it my utmost effort.

Japan-U.S. tariff negotiations

Q: You have also been in charge of Japan-U.S. tariff negotiations, negotiating with Secretary of Commerce Lutnick and Secretary of the Treasury Bessent. Now that the Japan-U.S. tariff negotiations are agreed upon, it is expected that as Minister of Economy, Trade and Industry, you will continue to be in charge of coordinating this issue, including the implementation of the agreement between Japan and the United States regarding tariff negotiations. I believe you will cooperate with Minister Motegi in the future on this matter, and I would appreciate it if you could tell us how you intend to do so.

A: There are of course some areas in the Japan-U.S. tariff negotiations that I will continue to work on. As instructed by Prime Minister Takaichi, I will continue to engage in the Japan-U.S. tariff negotiations and work closely with Minister Motegi to that end. Specifically, Minister Motegi will oversee the overall affairs, but I intend to remain actively engaged in coordination with the United States. Having been directly involved in the negotiations with the United States over the past year, I intend to continue those efforts with guidance from Minister Motegi. In addition, Minister Kiuchi will be taking the lead on domestic implementation. Together, we three Cabinet ministers will join forces and work with full commitment to achieve outcomes that truly benefit Japan.

U.S. President Trump’s visit to Japan

Q: Chief Cabinet Secretary Kihara announced a while ago that President Trump will be visiting Japan starting next week on October 27. In this regard, has Prime Minister Takaichi given you any instructions in connection with President Trump’s visit to Japan? Additionally, I think there is a possibility that President Trump will ask for concrete details on Japan’s investments in the United States that were agreed upon in the Japan-U.S. tariff negotiations. I would like to ask about the current status of coordination with the United States and future prospects.

A: First, the Chief Cabinet Secretary announced President Trump’s visit to Japan a short while ago. I understand that the Government of Japan invited President Trump. However, I would like to refrain from speculating about the content of discussions that will take place during his visit to Japan at this point. In any case, I recognize that it is important for both sides to sincerely and promptly implement the contents of the agreement reached between Japan and the United States. From this perspective, METI will also actively work to form projects in areas such as semiconductors and energy regarding the investment initiative you mentioned. Concerning the $550 billion investment, Japan will make this investment with the current term of President Trump in mind. Therefore, we are aiming to make the most of Japan-U.S. cooperation over the next three and a half years, by establishing U.S.-based supply chains in key areas of economic security. While it would certainly be ideal to launch the first project as soon as possible, we are committed to developing well-structured initiatives that truly serve the interests of both countries.

U.S. tariffs on semiconductors

Q: Regarding the tariff negotiations, I would like to ask about tariffs on semiconductors, which have been talked about repeatedly but have yet to materialize. Minister, I understand that during the negotiation process, the United States reaffirmed its intention that even if it does impose tariffs on semiconductors, Japan will not be treated less favorably than other countries such as the EU, but even so the impact of such tariffs will naturally be significant. Could you tell us your view on when the United States might impose tariffs on semiconductors, how you will respond as the Minister of Economy, Trade and Industry when it happens, and what your thoughts on tariffs on semiconductors are at this point?

A: First, as this is my first press conference since assuming office as the Minister of Economy, Trade and Industry, I would like to briefly explain my overall thoughts. There have been various statements from the United States regarding the investment of $550 billion, or 80 trillion yen, and I believe that there are quite a few people who misunderstand this point. This is an effort by Japan and the United States to recognize each other as special partners, and to join forces together, or with like-minded countries, to build supply chains in the United States in areas that are important for economic security. Therefore, at least on that point, in my most recent remote conversation with Secretary of Commerce Lutnick, he said that Japan is a great partner. I myself was disinclined to simply accept the imposition of tariffs by the United States; what we wanted and aimed for based on Prime Minister Ishiba’s clear and consistent instructions to prioritize investment over tariffs was to reduce the five trillion yen in tariffs that would be imposed each year by more than two trillion yen on the condition that Japan will join hands with the United States to become its truly special partner. It is precisely because the United States understood Japan’s proposal and recognized it as having great significance that it went along with our proposal, despite the two trillion yen reduction in tariff revenue each year. Given this relationship, and there is of course a personal relationship of trust between Secretary of Commerce Lutnick and me, but more than that, things will continue to move forward based on the premise that the United States recognizes Japan as a special partner. Please make this relationship your basic understanding. Given this understanding, the current situation is that the EU, which consists of 27 sovereign nations, is a $20 trillion economy, while Japan is only a $4 trillion economy, which is smaller than that of Germany alone. What I had in mind throughout the negotiations was that it is not easy to bring together 27 sovereign nations in a $20 trillion economy, therefore, the U.S. will naturally approach negotiations with resolve. I will make every effort to secure trade terms on par with those negotiated by the EU, and to obtain all the concessions the EU has won. In addition, that will also enhance predictability for businesses and investors. As the issue of tariffication itself will remain in place, there will inevitably be negative aspects to it, but I have done my utmost to keep up with the EU so as not to be treated less favorably in terms of trade or predictability. In this context, Japan is recognized as a special partner and receives the Most-Favored-Nation treatment in the areas of semiconductors and pharmaceuticals. Another fact I would like to mention is that when the United States imposed sector-specific tariffs on timber and furniture, Japan was granted the Most-Favored-Nation treatment without any particular consultation about Japan’s opinion or our request for such treatment. I understand there is a lot of discussion about the matter, but what I believe, and what I hope reporters will share as a common understanding, is that Japan and the United States acknowledge each other as special partners. Rather than assuming instability, worrying about delays in executive orders, or anticipating further escalation, I hope you will make reasonable assumptions and write articles based on the understanding that Japan and the United States are fundamentally engaged in a stable and cooperative partnership. That, I believe, will help prevent unnecessary anxiety among domestic businesses and investors. Regarding semiconductors, when the President and I led the meeting on July 22, I asked for Japan to receive the Most-Favored-Nation treatment for semiconductors and pharmaceuticals. Since the response was positive, that is how things have proceeded. Based on the context I just explained, the reason for the delay in issuing the executive order was likely due to ongoing discussions about what tariff rates to impose on countries other than Japan. If I remember correctly, President Trump has mentioned 100% tariffs on semiconductors and 250% tariffs on pharmaceuticals. If such executive orders were to be issued, countries around the world would find it extremely difficult to export to the United States, and it would essentially have no choice but to produce everything domestically. However, Japan is the only country that has secured the Most-Favored-Nation treatment. This means that, like the EU, if Japan is willing to pay a 15% tariff, it retains an alternative option: to produce domestically and export its products to the United States.

U.S.-Japan tariff negotiations

Q: You mentioned earlier that you, Minister Motegi, and Minister Kiuchi would lead the implementation of the U.S.-Japan agreement on tariffs. During the Ishiba Cabinet, you negotiated alone with the three U.S. presidential cabinet officials. Now, Japan will have a team of three ministers dedicated to trade matters. I would like to ask you about reasons for this change in the negotiation framework. Also, please tell us if a specific policy has already been decided as to which organization will be responsible for working-level consultations. Will the office in charge of U.S. tariff measures of the Cabinet Secretariat continue to be in charge of negotiations or will another ministry or agency take the lead? One more question. You submitted a social media post this morning stating that you received a congratulatory telephone call from Secretary of Commerce Lutnick. Could you tell us what specifically was discussed and how you, as Minister, perceived the call?

A: Regarding the organizational framework for tariff negotiations, this is a matter for Prime Minister Takaichi to decide, so I would ask that you direct your question to her. As to my personal view of this, both Minister Motegi and Minister Kiuchi are truly seasoned politicians whom I deeply respect as a senior colleague and a fellow lawmaker. Therefore, I believe there are significant advantages to the three of us working together. However, I must admit that it requires effort and time to ensure effective communication when three people work together. We intend to thoroughly address these aspects to maximize the benefits of working as a team of three.

As for the relationship with Secretary of Commerce Lutnick, we developed a strong bond of trust, or to put it more simply, we became friends around the time I visited the United States for four consecutive weeks. Since then, both of us feel that even when we hold meetings online, we are meeting in person. In fact, immediately after Prime Minister Ishiba announced his resignation, I received a message from him asking if I too would be stepping away—I believe the English phrase he used was “step away.” I responded that even though I would also resign, Japan keeps its promises and there is nothing to worry about. When my appointment as Minister of Economy, Trade and Industry was announced, he was extremely pleased and sent me a message last night Japan time, saying he absolutely wanted to offer his congratulations before I would go to bed. I replied he could, and then he called me to express his congratulations. As I mentioned on social media, he repeatedly said, “wonderful” in a way that really moved me. I told him that I had finally become his official counterpart, although I can’t recall the exact words I used. At that time, I didn't fully grasp which organization would represent Japan in the tariff negotiations. As far as I understand, the Japanese counterpart of the U.S. Department of Commerce is METI. We acknowledged and celebrated our mutual relationship as the Secretary of Commerce and the Minister of Economy, Trade and Industry. The secretary and I were both concerned about how to deepen our exchange if I were not a cabinet member. Now that I have been appointed as the minister, I am pleased we can take time to talk during his visit to Japan to attend official events.

Alaska LNG project

Q: I would like to ask two questions about the Alaska LNG project. You engaged in and succeeded in extremely difficult negotiations as the minister in charge of tariff negotiations. As the Minister of Economy, Trade and Industry, how will you proceed on the Alaska LNG project, which you mentioned earlier will be promoted in the framework of the 80 trillion yen-agreement with the U.S., while ensuring a win-win relationship? The second question is, how do you view the notion in the private sector that this size of a project should be undertaken as a national project, potentially soliciting the involvement of South Korea?

A: Please note that the Alaska LNG project you mentioned will undoubtedly be a tremendously large project, although nothing definite has been decided at this point. When I once discussed it with department heads of the U.S. government, I was amazed by some officials stating “The project is crucial for the economic security of the United States, so we are responsible for the construction,” and “As we will secure all the necessary funding and Japan will be in a position to be offered LNG offtake, its investment will not be a bargaining chip.” This is despite the fact that nothing concrete has been discussed or decided by the U.S. government. Approaches will depend entirely on U.S. policies, on which extensive discussions are ongoing. Within the framework of the 80 trillion yen (550 billion dollar) investment agreement, the project aims to build supply chains in the United States, inevitably utilizing U.S. land, water, and energy resources. It is legitimate that the United States holds the initiative. It's not relevant for us to request how they should proceed with their domestic affairs. While we contribute ideas, we will respect how the United States defines its role in the project. I believe that the detailed scheme of the Alaska LNG project will be determined going forward. I often hear people say Japan should invest the entire 80 trillion yen, but this statement misses the whole picture. The United States is essentially trying to join forces. It is a leading global power that places tremendous importance on self-reliance. While it certainly relies on Japan in certain areas, the United States makes a point of handling all the most critical matters itself. We will carefully consider our part while ascertaining what proposals they ultimately bring to the table. As to your question concerning how much to leverage private-sector resources, the $550 billion investment scheme itself is predicated on attracting private companies to participate, subject to applicable laws. In essence, the Japan Bank for International Cooperation Act (JBIC Act) and the Nippon Export and Investment Insurance (NEXI)-related laws preclude undertakings that deliver no benefit to Japan. It remains to be determined how Japanese companies will participate. For example, when Japanese companies borrow money, they don't necessarily have to borrow from Japanese banks. They can obtain financing from an American bank with a guarantee from NEXI. In this way, there are many options and approaches, and nothing is definitive at this point. So, I would like to assure you that Japan will not necessarily bear the entire cost and face serious consequences, nor should I be blamed for it, as some media outlets have reported or as some opposition members are concerned about.