Press Conference by Minister Akazawa (Excerpt)

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

1:36–2:06 p.m.
Friday, January 16, 2026
Press Conference Room, METI Main Building

Opening Remarks

Davos Meeting

From Monday, January 19, to Thursday, January 22, I will visit Switzerland to attend the World Economic Forum Annual Meeting, also known as the Davos meeting. As you are aware, the Davos meeting is attended by heads of state and government, cabinet ministers, and corporate CEOs from around the world to discuss the future direction of the global economy and international politics. Amid increasing global uncertainty, I will underscore the importance of a hybrid trade strategy that advances free trade and the rule of law, while also addressing relations with the United States, a hegemonic power. In addition, I intend to communicate the future direction of Japan’s industrial policy for realizing a strong economy under the Takaichi administration, as well as the significance of the agreements reached in Japan–U.S. tariff negotiations. I also plan to take advantage of this opportunity to hold meetings with ministers from various nations to discuss cooperation among like-minded countries and regions to strengthen resilient supply chains for critical minerals.

Letters Requesting Cooperation from Prefectural Governors to Address Issues Related to the Use of Nuclear Power

At the end of last year, the Governor of Niigata Prefecture, HANAZUMI Hideyo, and the Governor of Hokkaido, SUZUKI Naomichi, both expressed their understanding regarding the restart of the Tokyo Electric Power Company’s Kashiwazaki-Kariwa Nuclear Power Station and the Hokkaido Electric Power Company’s Tomari Nuclear Power Station, respectively. I would like to express our sincere gratitude to the residents in these regions once again. On that occasion, I received feedback from host communities calling for greater understanding in electricity-consuming regions as well regarding the significance of restarting nuclear power plants and of addressing backend issues. In light of such feedback, as the minister responsible for the nation’s energy policy, I have today issued a letter to prefectural governors nationwide to address issues associated with the use of nuclear power. It specifically asks them to work on the following two points: to promote public understanding among residents and strengthen cooperation with host communities; and to understand the government’s initiatives to expand survey areas, including electricity-consuming regions, for the final disposal of waste generated through the use of nuclear power.

Furthermore, I explained that we take seriously the misconduct at the Chubu Electric Power Company’s Hamaoka Nuclear Power Station, which has caused anxiety and concern among the public and residents of the host community. I also stated that, as Minister of Economy, Trade and Industry, I would take strict action against the company, while also requesting other operators to ensure that they make safety their top priority. I informed them that we had received reports from each operator confirming that no similar misconduct had occurred. The government will take the lead and work carefully to foster nationwide understanding of the significance of restarting nuclear power plants and the views of host communities. It will also assume responsibility, rather than leaving matters to local governments, in requesting cooperation from regions for surveys related to the selection of final disposal sites. For further information, please direct your inquiries to the administrative staff.

Wage Increase Support Caravan and the Expanded Meeting of Directors General of the Bureaus of Economy, Trade and Industry

METI launched the Wage Increase Support Caravan starting with the Kanto block yesterday. The Caravan will be rolled out nationwide on a regional-block basis to support small and medium-sized enterprises (SMEs) working to increase wages by providing the latest information on support measures and holding management consultation sessions led by support organizations. Further details can be found on the Small and Medium Enterprise Agency’s website. In addition, today we will hold the Expanded Meeting of Directors General of the Bureaus of Economy, Trade and Industry, where we will instruct the Directors General to further foster momentum for wage increases in local communities. These efforts include ensuring price pass-through and fair trade practices, accelerating the execution of the supplementary budget, promoting business succession and mergers and acquisitions, and encouraging local governments to utilize the grants to local regions for prioritized assistance. Going forward, we will continue to fully support SMEs striving to become strong by enhancing their earning power in a labor supply-constrained society.

Question-and-Answer Session

Davos Meeting

Q: Let me ask you about the Davos meeting you mentioned at the beginning. You participated in the meeting last year as Minister of Economic Revitalization, and this will be your second consecutive year of participation. Could you elaborate on your objectives for attending the meeting as Minister of METI? In addition, President Trump is scheduled to attend the meeting for the first time in six years, and leaders from many countries will also be present. Could you share your plans for bilateral meetings and the outcomes you hope to achieve?

A: As I mentioned earlier, the Davos meeting is attended by heads of state and government, cabinet ministers, and corporate CEOs from around the world to discuss the future direction of the global economy and international politics. At this meeting, I will underscore the importance of a hybrid trade strategy that advances free trade and the rule of law, which constitute the foundation of Japan, while also addressing relations with the United States, a hegemonic power. In addition, I intend to communicate the future direction of Japan’s industrial policy for realizing a strong economy under the Takaichi administration, as well as the significance of the agreements reached in Japan–U.S. tariff negotiations. I also plan to hold bilateral meetings during the visit to discuss cooperation with ministers from various countries and regions to strengthen resilient supply chains for critical minerals. In this respect, the key difference is that, while I will participate in the meeting this year as Minister of METI, last year I attended as Minister in charge of Economic and Fiscal Policy, conveying a message that, simply put, “now is the time for investment in Japan.” Specifically, I explained that the unemployment rate in Japan was unlikely to rise due to the labor supply constraints it faces, which makes Japan almost the only country where one could fully leverage AI and digital technologies as well as labor-saving machinery, which are the nation’s key focus areas, to improve productivity without concern over rising unemployment. I presented this view as the rationale for encouraging investment in Japan, and emphasized that Japan’s economy was on the verge of a major upswing. That perspective has largely remained unchanged since then. However, the global landscape has continued to evolve, with issues related to U.S. tariffs and China’s coercive economic measures emerging. Therefore, this time I intend to share my views on how Japan should respond to these challenges. Engaging in discussions with relevant ministers from various countries on issues such as critical minerals will be part of these efforts.

One Year Since President Trump Took Office

Q: January 20 will mark one year since President Trump took office. First, could you share your analysis of the economic impact over this period? In addition, as you have previously mentioned, the impact of the U.S. tariff measures on industry, which was originally estimated at five trillion yen, has been reduced by more than two trillion yen as a result of your negotiations with the United States. However, an impact of just under three trillion yen probably remains—how do you intend to address this? Furthermore, given that U.S. trade policy cannot necessarily be regarded as a temporary measure limited to the current administration, what are your views on the future direction Japan should pursue, including the diversification of export destinations, the transformation of industrial structures, and the strengthening of corporate management foundations?

A: First of all, I engaged in direct negotiations with President Trump myself through the recent Japan–U.S. tariff talks. This helped me gain a clear understanding of the U.S. position, and I believe that it also helped the United States understand Japan’s views and stance. Through this process, I feel that the United States has come to recognize Japan as a special partner with whom it works to promote mutual benefits while ensuring economic security. In other words, both countries share the understanding that these talks have opened the door to a new golden age of Japan–U.S. relations. As you mentioned, the Japan–U.S. trade agreement successfully reduced tariffs that would otherwise have been unilaterally imposed on Japan every year—amounting to over five trillion yen—by more than two trillion yen. I believe that this reduction is of great significance: Japan’s economy as a whole generates ordinary profits of just over 100 trillion yen, and had tariffs of five trillion yen been imposed, the resulting damage would have exceeded even the decline in ordinary profits observed during the global financial crisis or the COVID-19 pandemic. By limiting the impact to around three trillion yen, the damage has been contained to a level that can be regarded as within the range of economic fluctuations—one that, while still significant, would not be considered abnormal. In this sense, the negotiations were crucial. Their failure would have driven Japan’s whole economy into a situation where wage increases would no longer have been feasible. With such risks in mind, we managed to overcome the challenge and successfully mitigate the impact on Japan’s economy, while ensuring trade conditions and predictability that are not inferior to those of other countries. The understanding that I share with U.S. Secretary of Commerce Howard Lutnick is that even if tariffs are imposed in various areas going forward, Japan will be accorded most-favored-nation treatment. We will continue to work closely with the United States to ensure the faithful and prompt implementation of the agreement, while engaging in ongoing discussions on the series of tariff measures.

Meanwhile, as you pointed out, a certain level of tariffs remains. We intend to work on mitigating the impact to the greatest extent possible by leveraging measures included in the FY2025 supplementary budget as well as in the FY2026 initial budget. Among these measures are providing support for financing, promoting fair trade practices, including price pass-through, prioritizing tariff-affected businesses in the selection process for various subsidies aimed at improving productivity, and supporting overseas expansion and market development for SMEs. The last measure is intended to support motivated companies that are seeking other markets in response to the imposition of tariffs, which is what you referred to in your question as the diversification of export destinations. Through these efforts, we will steadily implement measures to strengthen the domestic industrial base and support the overseas expansion and market development of SMEs, including through the diversification of export destinations. We will strive to ensure an appropriate response while continuing to monitor and analyze the impact of U.S. tariffs on Japan’s industry and employment.

U.S. Tariffs on Semiconductors

Q: I have two questions regarding U.S. semiconductor tariffs. On January 14, President Trump signed an executive order imposing an additional 25% tariff on certain advanced semiconductors. My first question is whether Japanese products could fall within the scope of this order. The second question concerns the most-favored-nation treatment for semiconductor tariffs stipulated in the Japan–U.S. tariff agreement, which does not appear to be specified in this executive order. Have you made any inquiries with the U.S. side regarding this point, and if so, what response have you received? I would appreciate it if you could provide answers to these two questions.

A: We are aware of the announcement made by the U.S. government regarding the semiconductor tariff measures that you pointed out. Japan will continue to closely monitor developments, and will respond appropriately after fully examining the content of the measures and their impact on Japan. As inquiries with the U.S. side are diplomatic matters, we would like to refrain from answering at this point, including whether or not such inquiries have been made.