Press Conference by Prime Minister ISHIBA Shigeru regarding the Implementation of the Japan-U.S. Agreement on U.S. Tariff Measures and Other Matters

(On the status of relief measures for items that were already subject to tariffs of 15% or more, following the Trump administration’s new reciprocal tariff measures that took effect at 1:01 p.m. today, with a 15% tariff on Japan; the current status of the relief measures for Japan and what steps Japan will take to urge the United States to respond if the relief measures are not applied; whether Prime Minister Ishiba believes that there is a discrepancy in understanding between Japan and the U.S. over this matter; and whether he still believes that what he has repeatedly described as the steady implementation of the Japan-U.S. agreement remains viable under these circumstances)

As you know, in the recent agreement between Japan and the U.S., we were able to keep the reciprocal tariff rate on Japan at 15%, while the rate had initially been planned to be raised to 25%. On this reciprocal tariff issue, we have confirmed with the U.S. that there is no discrepancy between the two countries in the understanding that for items with an existing tariff rate of 15% or more, no additional tariffs will be imposed, while for items with an existing tariff rate of less than 15%, a tariff of 15% including the existing rate will be imposed.

I understand that the new presidential order on reciprocal tariffs came into effect today, August 7. Mr. Akazawa, who is currently visiting the U.S., has reconfirmed the details of the agreement on the reciprocal tariffs with the U.S. side. Accordingly, we are strongly urging the U.S. to take immediate measures to revise the presidential order that has already gone into effect. We will continue to make strong requests to the U.S. in every possible way, including at the ministerial level.

(On whether sufficient confirmations or procedures were not conducted when the Japan-U.S. agreement was made, given that a tariff rate different from Japan’s understanding has been imposed, even though Prime Minister Ishiba has explained that there is no discrepancy in understanding between the two countries; and whether he still believes that it is appropriate not to create a written agreement, while the lack of a written agreement has led to a difference in understanding between Japan and the U.S. on the agreed terms)

As I mentioned a short while ago. Regarding whether a written agreement should have been created, our position is what I explained in the Diet the other day. Both sides are aligned in sharing and understanding. We remain committed to strongly urging the U.S. side to take necessary steps.

(On the details and purpose of the instruction Prime Minister Ishiba gave to Secretary-General Moriyama regarding an investigation into the actual status of donations received by LDP branches; whether he plans to hold a party leader meeting with Mr. NODA, President of the Constitutional Democratic Party of Japan; and if so, whether they will discuss topics such as a consumption tax reduction)

During the recent session of the House of Representatives Budget Committee, President Noda asked me about corporate and organizational donations to party branches. We have agreed to have a sincere discussion on this issue in the future. To prepare for that, it is necessary to identify the current state of such donations received by LDP branches from corporations and organizations. That is why I have instructed the Secretary-General and the Policy Research Council Chairperson to assess the current situation. Our party will decide on how to respond to this matter based on the findings of the review. So, we are currently in the process of carrying out that assessment.

I have instructed the Secretary-General and the Policy Research Council Chairperson to discuss with the Constitutional Democratic Party of Japan the ideal form of income redistribution, such as the refundable tax credit. As for a reduction in the consumption tax, however, there are considerable challenges involved, and this must be clearly understood. I would like to closely monitor how the situation will evolve.

At this point, no specific party leader meeting with President Noda of the Constitutional Democratic Party of Japan has been set. That’s all.