Press Conference by Minister Akazawa (Excerpt)

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

10:17-10:39 a.m.
Friday, October 24, 2025
Press Conference Room, METI Main Building

Opening Remarks

Visit to Fukushima

I am scheduled to visit Fukushima tomorrow, Saturday the 25th. First, I will visit TEPCO’s Fukushima Daiichi Nuclear Power Station. I intend to directly observe the progress of the decommissioning and the discharge of ALPS-treated water into the sea. Following that, I plan to meet with Mayor Yoshida of Okuma Town, Mayor Izawa of Futaba Town, Governor Uchibori of Fukushima Prefecture, and Chairperson Nishiyama of the Fukushima Prefectural Assembly. Through exchanges of views, I would like to directly express my determination toward the reconstruction of Fukushima, which is the Ministry of Economy, Trade and Industry (METI)’s top priority.

Question-and-Answer Session

Impact of U.S. auto tariffs

Q: Regarding U.S. auto tariffs, according to trade statistics from April to September, the export value of automobiles to the United States decreased by about 20% compared to the same period in the previous year. Furthermore, additional tariffs on medium- and large-sized trucks will be imposed starting in November, raising concerns about a downturn in automobile manufacturers’ performance. Could you please tell us about the direction of responses to mitigate the impact?

A: First, speaking in general terms, not limited to automobiles, through Japan-U.S. tariff negotiations, a tariff agreement was reached on July 22 and implemented via a presidential order on September 4. As a result, although Japan was originally expected to be subject to over five trillion yen in tariffs annually, we achieved a reduction of over two trillion yen. We believe this outcome has received a certain level of positive evaluation. However, it is also an undeniable fact that tariffs remain in place, and we must respond appropriately to the various impacts. While it is difficult to identify only the impact of the tariff measures from statistical data, in the trade statistics for the first half of fiscal year 2025, the total value of exports to the United States decreased by 10.2% and automobile exports to the United States decreased by 22.7% compared to the same period in the previous year. On the other hand, the decrease in the number of units exported was limited to 2.4% year-on-year, indicating that the export unit price has declined. Considering these statistics along with comments and other feedback from businesses, losses due to tariff payments continue to occur, and there is a possibility that the U.S. market may shrink if prices continue to rise going forward. Taking these impacts into account, we intend to continue initiatives for automobiles, such as a fundamental review of vehicle taxation to revitalize the domestic market and accompanying support including the Mikata Project to assist auto parts suppliers. Regarding the additional tariffs on medium- and large-sized vehicles, their parts, and buses scheduled to take effect in November, we will thoroughly gather and analyze information on the impact, examine the situation carefully, and respond appropriately.

Telephone meeting with H.E. Mr. Howard W. Lutnick, U.S. Secretary of Commerce

Q: Minister Akazawa, on the night of the 22nd, you had a telephone meeting with Secretary of Commerce Lutnick for approximately 70 minutes. According to reports, the Secretary extended his congratulations on your appointment as Minister of Economy, Trade and Industry, and confirmed the sincere and prompt implementation of the Japan-U.S. agreement. Could you share specifics of the conversation during the meeting, to the extent possible, regarding whether there was any mention of President Trump’s visit to Japan, and whether Secretary Lutnick himself will accompany the President?

A: On the night of the 22nd, I held a telephone meeting with Secretary of Commerce Lutnick for approximately 70 minutes. During the meeting, Secretary Lutnick once again extended his congratulations on my appointment as Minister of Economy, Trade and Industry, following his message on the previous night, the 21st. We confirmed the continued sincere and prompt implementation of the Japan-U.S. agreement, and reaffirmed that through its implementation, we aim to further strengthen the Japan-U.S. alliance, ensure the economic security of both countries, and significantly promote economic growth. Regarding your question about whether President Trump’s visit to Japan was mentioned, it was. However, as this pertains to diplomatic discussions, I would like to refrain from commenting further on the specific details.

TSMC’s second factory

Q: I would like to ask about the semiconductor sector. Today, a location agreement will be signed in Kumamoto for the construction of TSMC’s second factory. Initially, construction was expected to begin around this spring, but as it has been delayed to this time, there is a sense of relief among the local communities that the construction is finally starting. First, could you share your thoughts on the commencement of construction of the second factory following the first one? Also, in order to promote further clustering of third and fourth fabrication factories in the future, expansion of demand on the Japanese side will be essential. Could you also share how METI plans to address such challenges?

A: Regarding TSMC’s second factroy in Kumamoto, I am aware that a location agreement will be signed today with Kikuyo Town, Kumamoto, and that construction will begin. I hope that the construction will proceed smoothly and contribute to strengthening Japan’s production base for advanced logic semiconductors. As for the first fab, I have heard that, from the outset, the plan was to gradually introduce equipment following the start of mass production in order to enhance production capacity, that the equipment already installed is currently operating at full capacity, and that further installation of equipment is also underway. Regarding the ripple effects on the regional economy, since TSMC’s entry, we have already seen significant and widespread impacts, such as an approximate doubling of capital investment across the entire manufacturing industry not only in Kumamoto but throughout the Kyushu region. We will continue to devote our full efforts, in cooperation with relevant parties, toward the revival of Japan’s semiconductor industry.

JERA’s acquisition of interests in U.S. shale gas fields

Q: I would like to ask about the recent move by the major power company JERA. On the 23rd, yesterday, JERA announced that it will acquire interests in the development and production of shale gas from U.S. companies. JERA stated that this will contribute to strengthening the partnership with the United States, while also noting that it is not directly related to tariff negotiations. As the official who led the Japan-U.S. tariff negotiations, how do you view this move by JERA?

A: I am well aware that JERA has entered into agreements with several U.S. companies to acquire interests in shale gas fields in the United States. While I will refrain from commenting on individual corporate agreements, I would say in general terms that Japanese companies acquiring upstream LNG interests in the United States contributes to deepening Japan-U.S. energy cooperation. Energy is undoubtedly one of the most critical areas of economic security, and I believe such cooperation between Japan and the United States—and its further deepening—deserve straightforward and positive recognition. As you mentioned in your question, this is not directly related to the content agreed upon in the Japan-U.S. tariff negotiations, but it is certainly an investment project in the energy sector that strengthens the relationship between Japan and the United States as allied nations and serves mutual interests, and I would like to express my sincere welcome for this development.

Eighty trillion yen-scale investment in the United States under the Japan-U.S. tariff agreement

Q: Ahead of U.S. President Trump’s visit to Japan next week, could you provide an update on the progress of the 80 trillion yen-scale investment by Japan in the United States that was agreed upon between both countries?

A: First of all, the 550-billion-dollar investment initiative between Japan and the United States is a crucial component of the Japan-U.S. tariff agreement. There appears to be some misunderstanding in certain quarters, but this initiative, which includes equity investments, loans, and loan guarantees, with a ceiling of 550 billion dollars, is intended to assemble and structure projects during President Trump’s term to build supply chains in the United States in areas critical to economic security. That is the basic concept. Naturally, this topic may come up when President Trump visits Japan, but nothing specific has been decided regarding what will be communicated between the leaders, and I have nothing concrete to share at this point. As for the progress of the 550-billion-dollar investment, to the extent I am aware, some Japanese companies have already shown interest behind the scenes, and we are committed to structuring solid projects.

As I have said repeatedly, contrary to what some media reports, certain opposition parties, and various other groups have suggested, this is not a framework in which Japan simply acts according to U.S. instructions. The Memorandum of Understanding (MOU) is publicly available on the Cabinet Secretariat’s website, and I encourage everyone to review it carefully. The original document is in English, but I believe a Japanese translation is also available. I would appreciate it if future questions could be based on a proper understanding of the framework outlined in the MOU. Under this framework, a Consultation Committee and an Investment Committee are established. The Consultation Committee allows Japan and the United States to discuss legal and strategic perspectives thoroughly. Projects approved there are then reviewed by the Investment Committee, which is a U.S. body chaired by Secretary of Commerce Lutnick. The options approved by the Investment Committee are then presented to the President, who selects the ones to proceed with. Since this matter must be carried out in accordance with the MOU, no conclusions can be reached unless that process is properly followed. Again, I want to emphasize that this is not a case of Japan simply following U.S. instructions, and I hope that point is clearly understood. I intend to continue responding sincerely to future questions from members of the press.