[Title] Press Conference by Prime Minister ISHIBA Shigeru Regarding the Agreement Reached in the Japan-U.S. Consultation on U.S. Tariff Measures and Other Matters

[Opening statement by Prime Minister Ishiba]

With regard to the Japan-U.S. Consultation on U.S. tariff measures, we have just reached an agreement with President Trump. I will give an overview of that agreement now. First, for automobiles and automobile parts, both key industries for Japan, we have reached an agreement to reduce by half the 25 percent additional tariff imposed since April, bringing the total tariff rate to 15 percent, including the rate that was already in place. Japan has succeeded in becoming the first country anywhere in the world to achieve a reduction in tariffs on automobiles and automobile parts without also being subject to quantitative restrictions.

Next, concerning reciprocal tariffs, we succeeded in limiting the tariff rate imposed on Japan to 15 percent, down from the 25 percent originally planned. This is the lowest rate negotiated to date by any country running a trade surplus with the United States.

Moreover, for semiconductors, pharmaceuticals, and other such critical goods in terms of economic security, even if tariffs were to be imposed in the future, we have secured a firm commitment that Japan will receive treatment at least as favorable as that afforded to any other country.

At the same time, we agreed that Japan and the U.S. will work in close partnership to build resilient supply chains benefiting both our nations through investments in the United States conducted by Japanese companies in fields vital to economic security, including semiconductors, pharmaceuticals, steel, shipbuilding, critical minerals, aerospace, energy, automobiles, and artificial intelligence (AI) and quantum technologies. I consider this to truly be an extremely important agreement from the standpoint of Japan's economic security.

This agreement does not incorporate any reductions of tariffs set by the Japanese side, including on agricultural products. This is truly the result of our consistently advocating, and vigorously and persistently pursuing, investment over tariffs, the approach Japan has taken since I proposed it to President Trump during our summit meeting at the White House in February.

We sought to reach an agreement that protects what should be protected and is also fully in harmony with the national interests of both Japan and the United States. I believe that we have now realized just such an agreement with President Trump.

As for item-specific tariff rates under this agreement, in consideration of the enormous number of items we export to the United States, we will lose no time in making preparations that will enable our roughly 1,000 special consultation service locations nationwide to respond in a careful manner to inquiries concerning the tariff rates applicable to individual items. I have just issued instructions to get that underway. We will also offer well-tailored support in response to consultations regarding assistance for cash flow and other concerns of small- and medium-sized enterprises and small-scale business operators.

Close Japan-U.S. bilateral relations are indispensable for the stability and prosperity of not only our two nations but also the entire Indo-Pacific region and the international community as a whole. President Trump and I will work to get this agreement into effect while also developing Japan-U.S. relations even more across the entire spectrum of fields, beyond only the economy, and making further efforts to realize a Free and Open Indo-Pacific.

I will end my opening statement here.

(On whether or not expanding the import ratio for U.S. rice arose during the negotiations)

I'm not entirely sure I understand the intent of your question.

(On stories that have appeared in some media that Japan will increase the proportion of rice imports coming from the U.S.)

The Government is working within the system already in place, namely the "minimum access," or "MA" framework for rice. Within that framework, we will ensure that necessary rice procurement takes place, keeping in mind Japan's domestic supply and demand for rice.

As we will be acting within the existing framework, then yes, you could consider it as increasing the proportion of the total minimum access rice procurement that we source from the United States, but this agreement does not entail the sacrificing of Japanese agriculture in any way.

(On whether or not this essentially means increasing the proportion of rice that is imported)

We need to make a distinction between the proportion of imported rice and the quantity of imported rice. So, under the minimum access framework for rice, it is Japan that decides what countries we import from and the amount we import from each. That means, the total volume of imports is decided entirely within the minimum access framework itself. Then, within that total volume already laid out under that framework, Japan decides entirely at its own discretion which countries to source from, what to buy, and the amount from each source country.

(On what specific kinds of investment are envisioned, in light of reports of statements from the U.S. side that Japan will make US$550 billion of investments in the U.S.)

As for the specific kinds of investment, Minister Akazawa is scheduled to report to me on this in more detail later on, but the Japan side will make investments in the U.S. that generate employment there, including both loans and direct investments.

(On the reciprocal tariffs ultimately being reduced to a rate of 15 percent rather than being completely eliminated, in contrast to the Government's position of calling for their complete removal)

We made every possible effort, rooted in our stance of doing our utmost to defend our national interests. Thanks to that resolve, we emerged with the greatest degree of success of any country running a trade surplus with the U.S. This was, of course, the result of our unwavering efforts to minimize the impacts of the U.S. tariffs.

And, as I mentioned earlier, the outcome affects more than just automobiles. There are an enormous number of items that we export to the United States. We will assess what kinds of impacts those items may face and provide appropriate responses. Needless to say, we aim for the best possible outcome, but negotiations are never a case of one side getting 100 percent of its demands met while the other side emerges with nothing at all. We consider our success in negotiating the greatest reduction in tariffs of any country running a trade surplus with the U.S. to be a major accomplishment indeed.

(On Prime Minister Ishiba's own political future, given the outcome of these negotiations)

I'd like to answer that by adding to my earlier response. The US$550 billion is for promoting investments in the United States. As I mentioned earlier, Japan and the United States reached an agreement to build up a resilient supply chain in the United States -- one which benefits Japan, benefits the U.S., and benefits both countries together -- in pharmaceuticals, semiconductors, and other fields critically important for economic security, through investments by Japanese companies into the United States.

To be precise, in order to make all that possible, we agreed that Japan's government-affiliated financial institutions will make investments, loans, and loan guarantees available at a scale of up to US$550 billion, in order to promote [Japanese corporate] investment in the United States in pharmaceuticals, semiconductors, and other critical fields involving Japanese companies. Our idea is for these endeavors to make use of investments and loans from JBIC (the Japan Bank for International Cooperation) and loan guarantees from NEXI (Nippon Export and Investment Insurance).

The Government of Japan's approach is to take necessary measures to bolster the capital of these two institutions together with other essential steps, making it possible for them to carry out these operations smoothly. The specific dollar amount is something that will be decided in accordance with the actual progress of financing and guarantees. That is an accurate answer.

This is in reference to an earlier question, but Minister Akazawa will soon return to Japan, and he will report the situation to me in detail. Moreover, when we actually begin implementation, necessary measures will need to be taken within the U.S. federal government to get this initiative off the ground. We plan to examine the situation carefully, including the matters I just mentioned.