Key Facts
• July 29, 2025: Akazawa Ryoichi, Minister of Economic and Fiscal Policy, held a press conference.
• U.S. imposed a 25% tariff on automobiles, causing a significant drop in U.S.-bound auto prices.
• Corporate earnings are reportedly under pressure due to the price decline.
• Japan-U.S. tariff negotiations reduced mutual auto tariffs to 15%.
• July economic report revised “uncertainty” to “partial impact” regarding U.S. trade policies.
• Export outlook downgraded for the first time in 12 months, despite overall recovery.
• Japan agreed to invest up to $550 billion (approx. ¥80 trillion) in the U.S.
• Akazawa estimated Japan’s investment contribution at 1-2%, based on 2023 JBIC data.
• Tariff reduction agreement reportedly avoided a ¥10 trillion loss, based on trade data projections.
Summary
Japan’s Minister of Economic and Fiscal Policy, Akazawa Ryoichi, highlighted the impact of the U.S.’s 25% auto tariff during a press conference on July 29, 2025. The tariff has led to a significant drop in U.S.-bound auto prices, pressuring corporate earnings. While Japan and the U.S. agreed to reduce mutual auto tariffs to 15%, the July economic report downgraded export forecasts for the first time in a year, citing partial impacts from U.S. trade policies. Akazawa emphasized efforts to mitigate the domestic economic and employment effects of U.S. measures. Japan also committed to a $550 billion investment in the U.S., with Akazawa estimating a 1-2% contribution based on 2023 JBIC data. The tariff reduction agreement reportedly avoided a ¥10 trillion loss, calculated using trade data projections.
