Press Conference by Prime Minister ISHIBA Shigeru regarding Tariff Measures of the United States and Other Matters

(On Prime Minister Ishiba’s plans for domestic policy measures and their implementation timeline in reaction to U.S. President Trump’s announcement of detailed tariff measures, including an additional 24% tariff on Japanese goods, which he justified by claiming that Japan imposes a 700% tariff on U.S. rice, and a subsequent announcement that started just after 1:00 p.m. on April 3, Japan time, of an additional 25% tariff on automobiles; and whether he plans to lodge a protest against the Trump administration as its policy is expected to effectively scrap the Japan-U.S. Trade Agreement concluded during his first administration, and to directly speak with President Trump by telephone or in person.)

You have correctly mentioned what actually happened. Since 2019, Japan has been the world’s largest investor in the United States, with Japanese companies playing a significant role in the U.S. economy and continuing to do so. In particular, Japanese automobile manufacturers have made direct investments totaling approximately 61.6 billion dollars in the U.S., creating 2.3 million jobs. It is no exaggeration to say that these figures are the largest in the world. We have used our channels at different levels to request that Washington reconsider these unilateral tariff measures, which were implemented to our extreme regret and against our wishes.

The restrictive trade measures that the U.S. government has broadly introduced will have a significant impact not only on the economic relationship between Japan and the U.S., but also on the global economy and the multilateral trading system as a whole. Japan has serious concerns regarding whether the measures are consistent with WTO agreements and the Japan-U.S. Trade Agreement. Regarding rice, the accurate fact is that minimum access rice, which is imported through state trading solely with import mark-ups, is tariff-free. For other rice imports, we levy a tariff of 341 yen per kilogram. Nevertheless, the U.S. government has raised an issue of rice. Considering the announcement of the reciprocal tariff measures, along with the reference to rice, we find the development extremely regrettable, as I stated earlier. Moving forward, we will strongly urge Washington to reconsider its measures. While Cabinet ministers and ministry officials will thoroughly prepare for this, if it is deemed appropriate for me to directly discuss with President Trump, I will not hesitate to do so at the most appropriate time and through the most suitable means. At the same time, we will thoroughly examine the impact of the tariff measures on our domestic industries and provide all necessary support.

At the press conference on April 1, I explained our policy, but now that the tariffs have actually taken effect, we will implement concrete support measures as a short-term response. Firstly, we will establish special consultation counters today at approximately 1000 locations across the country, including government-affiliated financial institutions and commercial and industrial organizations. Through consultation, we will thoroughly and meticulously address all concerns and anxieties facing small and medium-sized enterprises and small-scale business operators. In doing so, instead of sitting back until the information is gathered within the Government, we will dispatch state ministers and parliamentary vice-ministers to regions where the automotive industry is concentrated, as well as to related factories. This is the first point.

Secondly, we will provide support for cash management and financing. For small and medium-sized enterprises and small-scale business operators affected by the tariffs, we will ease the eligibility requirements for the Japan Finance Corporation’s safety-net loans. We will strengthen support by relaxing the current condition requiring a 5% or more decrease in sales. For international transactions, we will also provide support through Nippon Export and Investment Insurance (NEXI).

Thirdly, we will provide support to strengthen the businesses of automotive parts suppliers. For automotive parts suppliers defined as medium-sized or small and medium-sized, we will vigorously implement the “Mikata Project,” which aims to offer management advice and introduces various support measures. Furthermore, we will prioritize the applications from these suppliers for the Monozukuri (manufacturing) Subsidy, which is part of the Productivity Revolution Project totaling 340 billion yen, as well as for the new business creation subsidy totaling 150 billion yen. To ensure that appropriate price pass-through is not hindered in supply chains, the relevant ministers will strongly request that related industries comply. Moving forward, as the reciprocal tariffs are expected to take effect, we will provide similar support to businesses affected by them as well. By steadily implementing these support measures, we will address the concerns facing affected businesses in a meticulous manner.

This afternoon, I will gather the relevant ministers to instruct them on the necessary responses. This morning, at 11:30 a.m., I invited Mr. ONODERA Itsunori, Chairman of the LDP Policy Research Council, to meet with me, and instructed him to thoroughly understand the impact on the industry and to consider the necessary responses. The Government and the ruling parties will work together as one to ensure that we fully protect the lives of the people, their employment and the industry. That’s all from me.