Press Conference by Minister Akazawa (Excerpt)

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

10:06-10:13 a.m.
Tuesday, November 11, 2025
Press Conference Room, METI Main Building

Opening Remarks

Cabinet decision on the Cabinet Order to Partially Amend the Export Trade Control Order

Today, a Cabinet Decision was made on the Cabinet Order to Partially Amend the Export Trade Control Order. This Cabinet Order specifies items subject to export control, such as weapons and goods that can be diverted for military use. In this amendment, in accordance with international agreements, we have added new items to the list of regulated items and made other revisions. It is scheduled to be promulgated on Friday, November 14. Relevant ministerial orders and public notices are also scheduled to be promulgated on the same day. Among these, based on the judgment in the state redress lawsuit filed earlier by Ohkawara Kakohki Co., Ltd., we have clarified regulations concerning spray dryers. The Ministry of Economy, Trade and Industry acknowledges that there were points to reflect upon regarding the clarity of regulations under the Foreign Exchange and Foreign Trade Act, and therefore, after hearing opinions from industry and experts, we have worked to clarify the regulatory content. Furthermore, we would like to express our sincere condolences to the family and colleagues of Mr. Aishima Shizuo, who passed away after being detained in connection with this matter. We will continue to strive to clarify the regulatory content and respond carefully to consultations from industry.

Question-and-Answer Session

Earnings forecast for listed companies for the fiscal year ending March 2026

Q: According to a summary of private-sector research, the earnings forecast for listed companies for the fiscal year ending March 2026, including automobiles and steel, shows that the combined total of net profits is expected to decline for the first time in six years. This may still change going forward, but there are indications that the impact of U.S. tariff policies is significant. METI has repeatedly held meetings of the Task Force for U.S. Tariffs and considered responses. Please tell us the specific direction of future support, including measures for related small and medium-sized enterprises.

A: Through Japan-U.S. tariff negotiations, we achieved a reduction of more than two trillion yen from what would have been over five trillion yen in tariffs imposed on our country annually, and I believe this has been acknowledged to some extent. However, the fact remains that tariffs still exist, and it is necessary to respond appropriately to various impacts. In particular, centered on the automobile industry, losses from tariff payments continue, and if price increases proceed in the U.S. market, there is a risk that demand in the U.S. market may shrink. These impacts are likely to affect not only large enterprises but also various companies in the supply chain, including small and medium-sized enterprises. In fact, we have heard concerns from medium, small, and micro businesses that orders are stagnating due to the impact of tariffs or that future business performance may be adversely affected. To mitigate these impacts, we will continue to steadily implement various measures, such as support for financing, promotion of fair-trade practices including passing on costs to prices, preferential selection of businesses affected by tariffs in relevant subsidies aimed at improving productivity, support for expanding sales channels for small and medium-sized enterprises, and fundamental review of vehicle taxation to revitalize the domestic market. Based on Prime Minister Takaichi’s instructions to formulate economic measures, we intend to take full account of and analyze the impact of U.S. tariffs on our industries and employment, and to swiftly take economic and other necessary measures.

Public loans for investment plans in decarbonized power sources and transmission networks

Q: This morning, some reports stated that METI aims to amend laws to enable public organizations to provide loans for investment plans in nuclear power generation and transmission networks, leveraging government credit to advance decarbonization. It is also reported that this proposal will be presented shortly at the General Resources and Energy Research Committee, which is currently in session. As Minister, could you share your views on this initiative and your thoughts on why public financing is necessary in the first place?

A: At today’s meeting of the Agency for Natural Resources and Energy’s council, discussions are scheduled on leveraging government credit to provide loans that complement private financing, in order to support large-scale investments in decarbonized power sources and transmission networks. The meeting began at 10 a.m., so the discussions are taking place right now. With electricity demand expected to rise due to Digital Transformation (DX) and Green Transformation (GX) efforts, ensuring a stable power supply is a fundamental prerequisite. To address decarbonization in the power sector, it is essential to intensively carry out large-scale investments over a short period. Based on the discussions of the relevant councils, we intend to conduct focused deliberations on whether private financing alone is sufficient for the rapid development of decarbonized power sources and transmission networks, and to examine measures to facilitate the smooth procurement of the necessary investment funds.