Press Conference by Minister Akazawa (Excerpt)

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

11:03–11:20 a.m.
Tuesday, February 24, 2026
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

The U.S. Supreme Court ruled reciprocal tariffs unconstitutional, and new tariff measures

Q: Following the U.S. Supreme Court's ruling that reciprocal tariffs are unconstitutional, President Trump announced that he will increase tariffs from the initial 10% to 15%. Could you share your view on the ruling and the new additional tariffs, as well as the Japanese government's response? The Japan-U.S. agreement consists of reductions in reciprocal tariffs and in automobile tariffs, but are there any plans to renegotiate with the United States in response to the new tariffs? Also, with regard to reciprocal tariffs, the so-called non-stacking rule is applicable, but has it been confirmed that this rule will also be applied to the tariff measures just announced by the United States?

A: Regarding the ruling you mentioned on the U.S. tariff measures and the new tariff measures by the United States, Japan is thoroughly examining the content of the ruling and the impact of the measures, and will continue to monitor, with great interest, related developments, including the U.S. government's response, and the impact they may have on last year's agreement between Japan and the United States. Moreover, last night I held an online meeting with U.S. Secretary of Commerce Lutnick, where I requested that as the U.S. government takes new tariff measures, Japan not be treated less favorably than last year’s agreement between Japan and the United States. Furthermore, with regard to the agreement between Japan and the United States, I believe it will lead to the promotion of our mutual interests as special partners, the expansion of cooperation to ensure economic security, and the promotion of economic growth. Secretary of Commerce Lutnick and I reaffirmed that Japan and the United States will continue to faithfully and swiftly implement the agreement reached between Japan and the United States last year. In particular, the Strategic Investment Initiative is an initiative that benefits both Japan and the United States and is also beneficial to Japanese companies, and despite what some believe, Japan was not forced to sign an agreement that is disadvantageous to Japan in exchange for lowering tariffs. Japan and the United States recently announced that the two countries have concurred on the first batch of projects, and we will continue to work closely together to further coordinate the details of each project and ensure that the projects are implemented swiftly and smoothly.

Q: Regarding the new substitute tariffs, if the no-stacking rule is not applied, I believe an additional 10% to 15% will be imposed. In that case, there will be items on which tax rates will increase from the current level. Could you share your view on what impact this would have on Japan and whether you think additional countermeasures will be necessary.

A: First, Japan will thoroughly examine the content of the ruling and the impact of the measures, and will continue to monitor, with great interest, related developments, including the U.S. government's response, and the impact they may have on the agreement between Japan and the United States. Moreover, last night I held an online meeting with U.S. Secretary of Commerce Lutnick, where I requested that as the U.S. government takes new tariff measures, Japan not be treated less favorably than last year’s agreement between Japan and the United States. Supposing the 10% additional tariff currently announced by the U.S. is imposed, it could result in an additional tariff burden for certain items. These are items for which the tariff was previously capped at 15% on a non-stacking basis under last year’s Japan-U.S. agreement. We will continue to coordinate with the United States so that Japan is not treated less favorably than last year’s agreement between Japan and the United States.

Q: Regarding investment in the United States, is it correct to understand that the latest ruling will have absolutely no impact on the second batch of projects? Could you share any potential impacts this could have on the second batch of projects?

A: The first three projects were introduced on February 18, the opening day of the Diet session, and Secretary of Commerce Lutnick and I both confirmed in our online meeting yesterday that they were very positive developments. The Japan-U.S. tariff agreement was concluded on July 22 and followed by the Executive Order on September 4, and both countries have pledged to continue to implement it faithfully and swiftly. Furthermore, this will contribute to the mutual benefit of both countries, ensuring economic security, and contributing to the economic development of both. And again I reiterate that the two countries have confirmed that Japan and the United States continue to recognize each other as special partners.

Q: I would like to ask you about the U.S. tariff measures. You said you held an online meeting with Secretary of Commerce Lutnick last night, and I believe you said that you had requested that Japan not be treated less favorably than the Japan-U.S. agreement. Could you share, to the extent possible, how Secretary Lutnick responded to your request, and what comments he made? In addition, if it turns out that there is no non-stacking clause, would you consider visiting the United States once again to negotiate the matter?

A: I have strongly requested that they ensure that Japan not be treated less favorably than in the agreement between Japan and the United States last year. We have naturally exchanged views on this matter, but as for what I can share as of today, as I said earlier, both Japan and the United States believe that it is important and beneficial to both countries to continue to faithfully and swiftly implement the current Japan-U.S. tariff agreement. I would like to simply say that we agreed to do so. For now, I would like to leave it at that. In addition, as discussions will continue going forward, I cannot say anything definitive, but at this point in time, there are no specific plans for me to return to the United States for this purpose.

Japan-U.S. Strategic Investment Initiative

Q: I would like to ask you about the $550 billion investment in various fields in the U.S. What key points will make such investments beneficial to Japan?

A: First of all, as I think it would be good to have a common understanding on this point, I would like to say that the United States, based on President Trump's idea, announced that it will impose tariffs of over five trillion yen on Japan every year. Regarding this, people in the United States are very clear. In the face of President Trump’s tariff measures, if Japan wants the United States to lower its tariffs, Japan must lower its tariffs. This message was sent out to nearly 200 countries. The negotiations we had were like threading the needle. I say this is almost unique in the world because Japan negotiated in such a way that we did not lower any tariffs, while asking the United States to eliminate its tariffs. Some people who do not understand negotiations very well say that the negotiations were a failure, because we were unable to have the United States eliminate its tariff measures, but some people may not understand diplomatic negotiations very well. Both Japan and the United States started negotiations by trading high demands, but the two countries eventually reached a settlement of over two trillion yen, with the U.S. deciding to back down on tariffs. The United States decided to reduce its tariffs by over two trillion yen. And now, this point is critical: Having five trillion yen in tariffs imposed on Japan every year would be a unilateral detriment to Japan, so we argued that such imposition should never happen. Behind the United States' decision to reduce tariffs by over two trillion yen is their belief that Japan offered the United States benefits that are worth the cost of lowering its tariffs by over two trillion yen, or in a sense, backing down from its original demand. That is why an agreement was reached. Moreover, it would be meaningless to simply have a tariff reduction of over two trillion yen in exchange for a payment of over two trillion yen. Therefore, what is significant is that Japan achieved something beneficial not only to the United States but also to Japan. Specifically, speaking qualitatively at least, in the case of rare earths, for example, China completely controls rare earths. The United States will become a special partner to help Japan break away from China’s control over rare earths. Japan will provide investments, loans, and loan guarantees up to a total of $550 billion. In response, the United States will provide the federal government’s land, water, and energy, and will also enter into offtake agreements to purchase the finished products, and will also swiftly implement regulations. According to Secretary of Commerce Lutnick, the United States will even make arrangements for visas for Japanese nationals visiting the United States for the projects. In other words, Japan will provide financial support and the United States will make investment in kind, and the two countries will work together to ensure, strengthen, and establish economic security for the United States and Japan. To put it qualitatively, in my opinion, for the 40 years since 1985, Japan’s economic growth has been held in check by the United States and seen as a rival. But now the two countries recognize each other as special partners in order to eliminate threats to the economic security posed by certain countries, such as China’s dominance of rare earths. It is difficult to put into words, but the United States and Japan will work together to achieve Japan's economic growth. The two countries recognize the significance of working together to achieve economic growth for both countries as something mutually beneficial. In that sense, I believe Japan's economic position in the eyes of the United States has changed, and this is a very significant development. Speaking of the specific example of the $550 billion investment, now JBIC and NEXI will conduct business on a much larger scale than ever before. Furthermore, the scheme for loans is designed to ensure that the principal and interest are properly secured. In the case of NEXI, the scheme is designed to collect loan guarantee fees properly, so that JBIC and NEXI will be able to expand and develop the business they have been conducting to date. One aspect is that this will also lead to the further development of JBIC and NEXI. The other aspect is that Japanese companies will supply products for this project. Japanese companies will deliver products or services for the project, which will also include large-scale products equivalent to infrastructure or plants. This involves not only large companies but also small and medium enterprises. To give a specific example, such companies are Orol Co., Ltd. and Asahi Mekki Co., Ltd., both headquartered in Tottori City, Tottori Prefecture, and are known worldwide for their excellent technology in metal surface treatment processing. It has been reported in local newspapers that such companies are interested in the project and intend to participate in the project. This project will enable sales to be generated by companies including small and medium enterprises and mid-ranking enterprises. To summarize the three points I have made, in addition to the qualitative fact that Japan and the United States have recognized each other as special partners, which will be of great significance for the development of Japan, there is also the benefit that JBIC and NEXI will be able to significantly develop their business through specific projects, and that Japanese companies, not only large ones but also major medium enterprises and SMEs will be able to generate sales through these projects. Taking all of these factors into consideration, Japan highly evaluates the United States’ tariff reduction of over two trillion yen, and in addition, the United States also highly evaluates Japan’s proposal. As a result, rather than merely incurring over two trillion yen in tariff costs, Japan has secured projects through the tariff reduction that will benefit Japan. I believe Japan has successfully shifted the dynamic from a simple net loss to a win-win transaction.