Press Conference by Minister Akazawa (Excerpt)

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

8:38-8:50 a.m.
Friday, April 3, 2026
In front of the Cabinet Room, 2nd Floor, National Diet Building

Opening Remarks

None

Question-and-Answer Session

First meeting of the task force to secure the stability of critical goods in response to the situation in the Middle East

Q: Yesterday, the task force to secure stable supplies of critical materials held its first meeting. Could you share with us specific details of the discussion held at the meeting? Also, in relation to the meeting, please share your views on the current situation and future outlook for naphtha, for which Japan is said to have four months’ worth of reserves.

A: Yesterday, on Thursday, April 2, we held the first meeting of the task force to secure the stability of critical goods in response to the situation in the Middle East, thereby starting to inspect the overall situation concerning supplies of critical materials. At the meeting, each of the participating ministries reported on their measures to grasp the actual situation and solve supply-related issues. Specifically, for the following three materials, the relevant ministries reported that supplies had already been secured: heavy oil A, used for the sterilization of pediatric catheters; diesel fuel used for route buses in Kyushu; and ethylene oxide gas used for the sterilization of medical tools. Concerning measures under implementation, we are verifying facts regarding concerns over the supply of paint thinners. In the upstream section of the supply chain, petrochemical companies have been continuously supplying them in Japan, but there seem to be some bottlenecks in the midstream section. We are trying to identify where the bottlenecks are. Also, the import of juvenile amberjacks may be delayed due to the shortage of special fuel used for their marine transport, and if the size of the fish exceeds 30 cm (31 cm, for example) tariffs will be imposed, while no tariffs will be imposed on imported juvenile amberjacks of up to 30 cm. We are considering implementing special tariff measures for juvenile amberjacks larger than 30 cm by the middle of April, for example waiving tariffs on imports of up to 50 cm. However, specific details will depend on the institutional design. I have said “50 cm” just to assure you, in an easy-to-understand manner that we will implement measures to ensure that juvenile amberjacks will not be subject to tariffs even if they grow larger. Please note that the number is just an example. As for the treatment of waste by local governments, no material hindrance has been reported, but I was informed that the Ministry of the Environment had established contact points for consultation. Concerning naphtha, which you have mentioned, we have secured supplies of oil-based products including naphtha, as well as crude oil, in the amount that is necessary to meet overall domestic demand, by measures such as releasing reserves and procuring alternatives. Regarding naphtha, petrochemical companies are working to procure alternatives from the United States and other countries. Also, including reserves in the downstream section of the supply chain and naphtha refined domestically in Japan, we have secured an equivalent of four months' domestic supply for naphtha-based chemicals as a whole. On the other hand, however, based on the recognition that there have been some imbalances in supply and bottlenecks in distribution, the related ministries will collaborate through the task force to collect supply chain-related information across all fields, including medical, transportation and agricultural fields, and support the flexible use of supplies via multiple distribution channels to ensure that people’s livelihoods and economic activities will not be hindered.

Request to save the use of oil-based products

Q: In relation to naphtha, which has been mentioned, due to the speech made by U.S. President Trump yesterday, oil and naphtha supplies may remain unstable for a longer period of time. Now that we cannot expect an early resolution of the issue, do you think it is necessary for the government to consider when to ask people to save the use of oil-based products?

A: We have been implementing measures to secure supplies that meet overall domestic demand by procuring alternatives from the United States, the Middle East via an alternative route, from Central Asia and Central and South America, as well as by releasing oil reserves. To this point, we have identified no material impact on Japan’s supply and demand of oil. However, we acknowledge that there have been some imbalances in supply and bottlenecks in distribution. In response, the Ministry of Economy, Trade and Industry (METI) established contact points for information to grasp the current situation about the supply and demand of critical materials and their prices and to support the flexible use of the material via multiple distribution routes, as I have already mentioned. In order to safeguard people’s lives and livelihoods, we will carefully implement measures in collaboration with relevant ministries and governmental agencies. On top of that, in consideration of the international supply and demand situation and price trends, we will consider all possible policy options, including measures on the demand side, utilizing methods that will not seriously affect the national economy.

U.S. tariffs on pharmaceuticals

Q: U.S. President Trump has signed an executive order on U.S. tariffs on pharmaceuticals this morning. For Japan, the tariff rate will be 15%, while 100% tariffs will be imposed on other major countries. What is your view on this and on the impact of the tariffs on Japanese companies?

A: I know that the U.S. government has made an announcement to that effect. Japan, as a result of our negotiation efforts with the United States, including the efforts made for the trade deal finalized between President Trump and myself on July 22, 2025 and those that led to the executive order issued by the U.S. President on September 4 of the year, the United States promised to treat Japan equally to the EU regarding terms and conditions of trade, although Japan’s economic scale is 4 trillion dollars and the EU’s is 20 trillion dollars, or five times that of Japan’s. While the U.S. is imposing 100% tariffs on rest of the world, Japan is will only receive 15% tariffs, along with the EU. This is quite significant, I think. Concerning the details of the tariff measures newly announced by the United States, including their impact on Japan, we are now conducting examinations to implement measures as appropriate. Basically, based on its relationships of trust with Japan, the United States has been giving us the most favorable conditions that are on par with those offered to the EU, except for some special conditions given to certain countries. However, for additional tariffs that the United States has imposed on Japan, essentially the hope is that the country will cease imposing them. But at any rate we have reached an agreement with the United States on the tariffs, based on which things are progressing.

Manufacture of advanced 3-nanometer semiconductors at TSMC’s second plant

Q: Let me ask you about semiconductors. Taiwan’s Ministry of Economic Affairs has approved TSMC’s manufacture of 3-nanometer semiconductors at its second plant that is under construction, and mass production will start in 2028, according to media reports. What do you think of the fact that the first production of high-performance semiconductors will start in Japan? Also, please share with us your views on the additional support that may be given to TSMC by the Japanese government following the upgrading of the manufacturer’s plan, including the subsidy that is said to amount to 732 billion yen.

A: I know that on Tuesday, March 31, the Taiwanese authorities approved TSMC’s upgrading of its investment plan for the second plant in Kumamoto to manufacture advanced 3-nanometer chips there. Accordingly, Japan will have the ability to produce leading-edge, 3-nanometer semiconductors, which is very meaningful for the country’s economic security. This February, Chairman Che-Chia Wei of TSMC directly consulted me with the upgrading of the investment plan, but details are still under discussion, and I will refrain from providing a specific answer concerning the additional support that may be given to the semiconductor manufacturer.