Press Conference by Minister Akazawa (Excerpt)

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

9:18‒9:29 a.m.
Tuesday, November 18, 2025
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Relations with the People’s Republic of China

Q: Following Prime Minister Takaichi’s remarks at the Diet, the Government of the People’s Republic of China (hereafter, “China”) called on its citizens to voluntarily refrain from traveling to Japan. In fact, some local travel agencies have reportedly stopped selling tours to Japan. In your view, how will this situation impact the Japanese economy, especially the tourism sector, where many small and medium-sized businesses operate, and the consumer industries? Is the Ministry of Economy, Trade and Industry (METI) considering any measures?

A: I understand that there has been no particular change to China’s export control measures for rare earths at this point, following Prime Minister Takaichi’s remark that you mentioned. The ongoing export control measures on rare earths imposed by China are seriously affecting the global supply chains. On Thursday, October 30, I also expressed strong concerns to Chinese Minister of Commerce Wang Wentao, urging the Government of China to take appropriate action. METI will continue to closely monitor the situation and make additional requests as necessary in collaboration with relevant countries.

Japan-U.S. tariff negotiations

Q: Regarding the Japan-U.S. tariff negotiations, thanks to your dedicated efforts, the tariffs on automobiles and reciprocal tariffs have both been reduced to 15%. Unfortunately, tariffs on Japanese steel and aluminum remain at 50%. The scope of steel and aluminum derivatives covered by the tariffs has been expanding. If this trend persists, the list of products subject to the 50% tariff could grow, possibly including construction equipment. If this occurs, tariff issues could become more complicated, contrary to the purpose of the tariff agreement between Japan and the United States. Please share your views on whether you have any concerns at this point regarding the expanding or potentially expanding scope of aluminum and steel derivatives affected by the tariffs, along with what actions you believe should be taken.

A: First of all, I would like to clarify your question. You mentioned that the scope of derivatives covered by the tariffs is expanding, but have you confirmed this as fact? I would like to ask what you specifically mean by this.

Q: I apologize for any confusion. My understanding is that steel and aluminum tariffs apply to products that use either material, such as construction equipment, which means the scope of items subject to the tariffs may have expanded.

A: To put it simply, the scope of tariff application does not gradually expand unless a new Executive Order is issued and the relevant rules are explicitly changed. As a negotiator on Japan-U.S. tariffs, I didn’t prioritize steel and aluminum. Instead, we focused our efforts on reducing automobile and reciprocal tariffs as a priority, with semiconductors and pharmaceuticals placed next in line to receive most-favored-nation treatment. The Government of Japan consistently viewed all additional tariffs as regrettable and requested their complete elimination. Naturally, this included steel and aluminum tariffs. However, based on a comprehensive assessment from a range of perspectives, we did not in fact devote the same amount of time, effort, and energy to steel and aluminum as we did to automobiles and reciprocal tariffs, or to semiconductors and pharmaceuticals. Furthermore, the United States initially imposed 25% tariffs on Japan and later raised them to 50%, with the possibility of further increases. Nonetheless, a deal with President Trump was reached on July 22, an Executive Order was issued on September 4, and a joint statement followed. Based on these events, I understand that Japan and the United States consider each other as special partners and that Japan will, in principle, receive most-favored-nation treatment whenever new measures are adopted, even if not explicitly stated in a document. In fact, although Japan did not specifically discuss wood or wooden furniture, the rules as announced indicated that Japan was treated as a most-favored nation. Given this situation, I understand that the 50% tariffs on Japanese steel and aluminum imposed by the Government of the United States remain unchanged and are not being gradually expanded in scope. There is another point I would like to add. If the Government of Japan issues a law or regulation defining what constitutes steel and aluminum products, and doubts or questions arise regarding its application, or officials realize that some specific details have not been fully discussed, administrative authorities may examine the matter and clarify the rules. Basically, however, I am not aware of any new developments that are disadvantageous to Japan since we reached the agreement.