Key Facts
• July 26, 2025: Akasawa Ryosei appeared on NHK to discuss U.S.-Japan trade.
• U.S. tariff rate reduced to 15%, avoiding approximately ¥10 trillion in losses.
• Profit distribution for U.S. investments set at 90% U.S., 10% Japan.
• Japan’s loss estimated at “a few hundred billion yen on the lower end.”
• $550 billion (approx. ¥80 trillion) investment framework includes equity, loans, and guarantees.
• Equity accounts for 1-2% of the ¥80 trillion framework.
• New tariff rates expected to take effect on August 1, 2025.
• Automotive tariffs to drop from 27.5% to 15%, pending presidential order.
• Akasawa emphasized economic security and benefits for participating companies.
• U.S. committed to purchasing certain products entirely from Japan.
Summary
On July 26, 2025, Economic Revitalization Minister Akasawa Ryosei highlighted the benefits of reducing U.S. tariffs to 15%, which helped Japan avoid ¥10 trillion in losses. However, the profit distribution for U.S. investments, set at 90% for the U.S. and 10% for Japan, will result in Japan losing “a few hundred billion yen on the lower end.” The $550 billion (¥80 trillion) investment framework includes equity, loans, and guarantees, with equity accounting for only 1-2%. Akasawa acknowledged the U.S.-favorable terms but stressed the importance of economic security and benefits for Japanese companies. New tariff rates are expected to take effect on August 1, 2025, with automotive tariffs dropping from 27.5% to 15%, pending a presidential order.
