Press Conference by Minister Akazawa (Excerpt)

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

8:36-8:41 a.m.
Friday, June 5, 2026
In front of the Cabinet Room, 2nd Floor, National Diet Building

Opening Remarks

Investment in Rapidus Corporation

Based on the implementation plan for Rapidus Corporation, which was selected under the Act on Facilitation of Information Processing, the Government of Japan has executed an investment of 150 billion yen in the company through the Innovation Platform Agency, Japan (IPA). The national government had already invested 100 billion yen in the company in February of this year through the IPA, making this latest investment the second round of national government investment. In April of this year, I visited Rapidus’s Hokkaido base, where I exchanged views with the management and on-site engineers. I was deeply impressed by the palpable enthusiasm of the employees, and I also confirmed and saw firsthand that the company’s initiatives are progressing at a speed unmatched anywhere in the world. This project is a cornerstone of the Government of Japan’s growth investment. As a national project that must succeed for the national interest, we will continue to make every possible effort toward its success. The administrative staff will provide further details.

Question-and-Answer Session

Gasoline subsidies

Q: I have a question regarding gasoline subsidies. It was recently announced that the balance of the subsidy fund had fallen to 670 billion yen as of the end of May. With the fund expected to be depleted by mid-July, the national government plans to establish a reserve fund for responding to the situation in the Middle East in the FY2026 supplementary budget in order to continue the program. At the same time, the government is also considering reviewing the scheme itself from the perspective of sustainability. Prime Minister Takaichi has stated that, as an exit strategy, the government will flexibly review the form of support, including the subsidy unit price, as necessary. Could you please explain the current status of the Ministry of Economy, Trade and Industry’s consideration of reviewing the scheme, including the timing for introducing a revised scheme and the subsidy unit price, as well as the outlook going forward?

A: The emergency measures to mitigate sharp fluctuations in fuel oil prices have been implemented to rapidly lower gasoline prices so as to protect the public’s livelihoods and economic activities at a time when gasoline prices were rising sharply and it was clear that they could exceed 200 yen per liter if left unaddressed. Regarding the future of these measures, we have received comments from both ruling and opposition party leaders that, as these are emergency measures to mitigate sharp fluctuations, flexible responses are needed while taking into account the situation in the Middle East, price trends, and the sustainability of the support measures. Taking these views into account, we will closely monitor the impact of developments in the Middle East on future price trends and the economy, and, as necessary, we intend to flexibly consider the form of support, including the subsidy unit price, while also making use of the newly established reserve fund for responding to the situation in the Middle East.

Additional U.S. tariff measures

Q: I have a question regarding additional U.S. tariffs measures. On the 2nd, the Office of the United States Trade Representative (USTR) announced a proposal to impose new additional tariffs of up to 12.5% on 60 countries and regions, including Japan. In this regard, in a post on X on the 3rd, you stated that you had held an online meeting with H.E. Howard W. Lutnick, Secretary of Commerce for the United States of America, on the 2nd and confirmed with the U.S. side that no additional tariffs exceeding last year’s agreement would be imposed. Currently, the United States is imposing a 10% tariff as a temporary measure until it introduces an alternative to the reciprocal tariffs that were deemed unconstitutional by the Supreme Court of the United States. Once this temporary measure expires, if a new tariff is introduced, it appears that it would remain within the ceiling of 15% agreed between Japan and the United States last year. Could you please explain what kinds of discussions you had with Secretary Lutnick regarding tariffs?

A: In response to the recent USTR remarks, we have been in close contact with both the Department of Commerce and the USTR. I held video conferences with Secretary Lutnick on the evenings of June 2nd and 3rd, lasting approximately 45 minutes and 70 minutes, respectively. The discussion on the 2nd mainly focused on confirming this matter, while the discussion on the 3rd addressed the second round of the Japan–U.S. investment initiative. We did not discuss the same topic on both days. In these online meetings, we reaffirmed that the agreement between Japan and the United States remains strong and valid. We also shared the understanding that last year’s agreement remains unchanged and that both countries continue to be committed to its implementation. On that basis, we confirmed that no additional tariffs exceeding last year’s agreement would be imposed on Japan. As has been reported, the Honorable Ambassador Jamieson Greer, USTR, also indicated yesterday an intention to comply with the trade agreements concluded over the past year. As these involve diplomatic exchanges, I would like to refrain from commenting on further details.