The Minerva Policy Reports deliver comprehensive research on the dynamic political, economic, and…
Weekly Japanese Industry and Policy News: 05 Apr - 11 Apr,2025
The EU Japan Centre is releasing a weekly press review covering Japan's economic and policy matters.
Economic News
▶ PM2.5 air pollution costs Japan $110bn a year, study finds
05 Apr, 2025
A University of Tokyo study estimates that health problems caused by hazardous small particules known as PM2.5 air pollution cost Japan about $110.2 billion annually. The study considered medical expenses, lost income, and reduced quality of life from 2001 to 2019. Older adults bear most of the burden, with $94.7 billion attributed to those aged 60 and over. Western Japan, with higher PM2.5 levels and fewer medical resources, is particularly affected. The study highlights the need for better healthcare access in rural areas. Climate change and wildfires may worsen air quality, while pollution from abroad remains a concern. Japan’s aging population adds to the urgency.
Nikkei Asia: https://asia.nikkei.com/Spotlight/Environment/PM2.5-air-pollution-costs-Japan-110bn-a-year-study-finds
▶ Japan to make vehicle gas pedal safety devices mandatory in 2028
05 Apr, 2025
Starting in September 2028, Japan will require all new automatic vehicles to have devices that prevent sudden acceleration due to pedal misapplication, mainly to reduce accidents involving elderly drivers. The devices must limit speed to under 8 km/h if an obstacle is 1.0–1.5 meters ahead. Manual vehicles are exempt. Most cars already have such systems—93.8% of domestic vehicles in 2023 were equipped—so the regulation will have minimal impact on automakers.
Mainichi: https://mainichi.jp/english/articles/20250405/p2g/00m/0bu/025000c
▶ Japan bankruptcies in FY 2024 top 10,000, highest in 11 yrs
08 Apr, 2025
In fiscal 2024, corporate bankruptcies in Japan exceeded 10,000 for the first time in 11 years, rising 12.1% to 10,144 cases, mostly affecting small businesses with under 10 employees. The increase was driven by labor shortages, high costs, and the end of COVID-era tax relief. The services sector had the most failures, followed by construction. Total liabilities dropped 3.6% to 2.37 trillion yen.
Mainichi: https://mainichi.jp/english/articles/20250408/p2g/00m/0na/034000c
▶ Japan and NATO to ramp up defense industry cooperation
09 Apr, 2025
Japanese Prime Minister Shigeru Ishiba and NATO chief Mark Rutte agreed to strengthen defense industry cooperation, focusing on dual-use technologies, in response to security threats from Russia and China. They emphasized the importance of NATO-Japan collaboration, linking Indo-Pacific and European security. Japan also expressed interest in joining a NATO command supporting Ukraine. The visit highlights NATO’s expanding ties with Indo-Pacific partners amid rising regional tensions.
Nikkei Asia: https://asia.nikkei.com/Politics/Defense/Japan-and-NATO-to-ramp-up-defense-industry-cooperation
MOFA: https://www.mofa.go.jp/erp/ep/pageite_000001_00006.html
▶ 90-day reprieve from U.S. reciprocal tariffs "positive": Japan
10 Apr, 2025
Japan welcomed U.S. President Trump’s 90-day pause on reciprocal tariffs as a “positive development” but continues to push for a full rollback of U.S. tariffs, including those on steel, aluminum, and autos. Prime Minister Shigeru Ishiba vowed to support Japan’s export-driven economy and dispatched Economy Minister Ryosei Akazawa to the U.S. for talks with Treasury Secretary Scott Bessent. Despite the pause, a 10% baseline tariff remains. Japan’s ruling coalition is also considering cash handouts (¥30,000–¥50,000) and tax cuts to cushion the economic impact. A Foreign Ministry task force has been formed to aid diplomatic efforts.
▶ Japan-UK Summit Telephone Meeting
10 Apr, 2025
On April 10, Japanese Prime Minister Shigeru Ishiba held a 30-minute phone call with UK Prime Minister Keir Starmer. They reaffirmed their commitment to strengthening Japan-UK relations, discussed economic issues including the impact of U.S. tariffs, and exchanged views on global security, including the situations in Ukraine and the Indo-Pacific. Both leaders agreed to continue close cooperation on international matters.
MOFA: https://www.mofa.go.jp/erp/we/gb/pageite_000001_00891.html
▶ Govt May Send Tariff Negotiator to U.S. in April; Ishiba Wants to Limit Economic Impact with Early Discussions
11 Apr, 2025
The Japanese government is arranging for Economic Revitalization Minister Ryosei Akazawa to visit the U.S. this month to negotiate a review of U.S. tariff measures. He is expected to meet with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. The goal is to reach an early agreement and reduce the impact of tariffs on Japan’s economy. Prime Minister Shigeru Ishiba sees early minister-level talks as essential. Japan is preparing bargaining options, including U.S. investment plans, regulatory reviews, and increased imports of U.S. agricultural products. The talks may also serve as a model for other countries and calm market concerns.
Yomiuri: https://japannews.yomiuri.co.jp/politics/politics-government/20250411-248215/
▶ Japan sets up task force for U.S. trade talks as tariff risk clouds economy
11 Apr, 2025
Japanese Prime Minister Shigeru Ishiba has established a task force, led by Economy Minister Ryosei Akazawa, to manage trade talks with the U.S., with Akazawa expected to visit Washington next week. As concerns grow over potential economic impacts from U.S. tariffs, ruling coalition lawmakers are considering temporary tax relief measures. Komeito, the LDP’s coalition partner, has proposed a temporary sales tax cut on food and cash payouts to households. However, some LDP members are cautious, as sales tax revenue is vital for funding Japan’s growing social welfare needs. Japan’s current sales tax is 10%, with 8% on food.
Nikkei Asia: https://asia.nikkei.com/Economy/Trade-war/Japan-sets-up-task-force-for-U.S.-trade-talks-as-tariff-risk-clouds-economy
Business News
▶ Japan's Rapidus in talks with U.S. tech giants to mass-produce chips: CEO
05 Apr, 2025
Japanese chipmaker Rapidus is in talks with Apple, Google, and around 50 other potential clients, including AI startups, to mass-produce 2-nanometer chips by 2027. A prototype line at its Hokkaido plant began partial operation and will be fully operational this month, with sample data expected by mid-July. Backed by IBM’s technology, Rapidus aims to close the gap with industry leader TSMC, which plans to produce 2-nm chips this year. CEO Atsuyoshi Koike highlighted strong interest from U.S. clients amid U.S.-China tensions and emphasized Rapidus's fast prototyping and future plans to pursue 1.4-nm technology.
▶ Nippon Steel to boost tinplate capacity in canned-tuna exporter Thailand
05 Apr, 2025
Nippon Steel will increase tinplate steel production capacity by nearly 30% at its Thai plant to meet growing demand from the country’s canning industry. Its subsidiary, NS-Siam United Steel, will invest about 2 billion baht ($58 million) to expand plating operations at the Rayong facility, with completion expected by March 2027. The upgrade will raise annual output from 280,000 to 350,000 tonnes. Thailand, a major canned food exporter, saw full-capacity production at the plant. NS-Siam holds a 60% market share and employs about 1,500 people. Nippon Steel operates 30 companies in Thailand with around 8,000 employees.
Nikkei Asia: https://asia.nikkei.com/Business/Materials/Nippon-Steel-to-boost-tinplate-capacity-in-canned-tuna-exporter-Thailand
▶ Toyota to cover U.S. suppliers' higher costs tied to Trump tariffs
05 Apr, 2025
Toyota’s North American subsidiary will assist suppliers with rising costs from new U.S. tariffs on imported vehicles and parts, including engines and transmissions, set to extend to Mexico and Canada by May 3. The company will cover the increased costs for now and maintain operations, though details on the duration of this support are still being finalized. Tariffs on qualifying auto parts under the USMCA will be waived, but a 25% tariff may eventually apply to non-U.S.-made content. Toyota’s U.S. plants produced 1.27 million vehicles in 2024, representing 13% of global production. Other automakers, like Stellantis and Ford, are adjusting their operations in response to the tariffs. Toyota will avoid raising prices and instead offset the impact through cost-cutting and efficiencies. Raising prices could reduce U.S. sales by 5-8% and operating profit by 6%, or $2.34 billion, according to Goldman Sachs.
Nikkei Asia: https://asia.nikkei.com/Business/Automobiles/Toyota-to-cover-U.S.-suppliers-higher-costs-tied-to-Trump-tariffs
▶ Shimadzu’s super accurate clock eyed for quake prediction
06 Apr, 2025
Shimadzu Corp. has unveiled the world’s most accurate clock—a compact optical lattice timepiece that won’t deviate by even one second over 10 billion years. Priced at ¥500 million ($3.3 million), the strontium atom-based clock uses a “magic wavelength” laser to stabilize atoms for ultra-precise timekeeping. Developed with Professor Hidetoshi Katori, the device also measures time variations caused by gravity, aiding potential earthquake and volcano prediction. Named the Aether Clock, it is smaller and more portable than earlier versions, with plans to sell 10 units over three years to global research institutions.
Asahi: https://www.asahi.com/ajw/articles/15667178
▶ Japan startup to sell stair-climbing electric wheelchair in 2026
06 Apr, 2025
Japanese startup Lifehub Inc. will launch an all-terrain electric wheelchair called Avest in 2026, capable of climbing and descending stairs, and boarding trains and buses without assistance. The wheelchair uses caterpillar tracks and adjusts seat angle on inclines up to 40 degrees. It can travel up to 40 km per charge and is priced at 1.5 million yen. Lifehub is also developing a version that can navigate escalators—potentially a world first. The company aims to support the disabled and elderly, and eventually market the device for broader personal mobility use.
Mainichi: https://mainichi.jp/english/articles/20250406/p2g/00m/0bu/032000c
▶ Japan Shipping Industry Increases Use of LNG Due to Difficulties Developing Next-Generation Fuel, Lower CO2 Emission Than Heavy Oil
08 Apr, 2025
Liquefied natural gas (LNG) is gaining attention among shipping companies as it reduces carbon emissions compared to heavy oil. With stricter EU environmental regulations, LNG is being seen as a transitional fuel, though next-generation fuels like hydrogen and ammonia are slow to be adopted. NYK Cruises will debut Japan's first LNG-powered cruise ship in July, and Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha are expanding LNG use for cargo ships. However, the shipping industry faces challenges in transitioning to next-generation fuels due to the energy demands for their production. While some companies, like NYK, are investing in ammonia fuel, others, like MOL and Kawasaki, are undecided on which fuel to use. Chinese and South Korean firms are advancing ammonia-fueled vessels, and Japan must support its firms to maintain a technological edge in this global shift.
Yomiuri: https://japannews.yomiuri.co.jp/science-nature/environment/20250408-247404/
▶ JERA Makes Final Investment Decision on “Blue Point” Low-Carbon Ammonia Production Project in the United States
09 Apr, 2025
JERA, in partnership with CF Industries and Mitsui, has made a final investment decision to build the world’s largest low-carbon ammonia production facility in Ascension Parish, Louisiana. The $4 billion "Blue Point" project will produce 1.4 million tons of ammonia annually using natural gas and carbon capture and storage (CCS) technology. JERA will invest 35% and will supply the ammonia to global markets starting in 2029. The project supports JERA’s goal of zero CO2 emissions by 2050 and reinforces its focus on clean energy, alongside renewables and LNG.
JERA: https://www.jera.co.jp/en/news/information/20250409_2155
Mitsui&Co.,: https://www.mitsui.com/jp/en/release/2025/1251204_14855.html
▶ Japan's Meiko to build new plant in Vietnam for iPhone parts
10 Apr, 2025
Meiko Electronics will invest ¥50 billion ($340 million) to build a new plant in Vietnam by fiscal 2026 to produce compact, energy-efficient circuit boards for iPhones. This move supports Apple's shift in iPhone production from China to India, driven by high U.S. tariffs on Chinese goods. Meiko’s new facility in Hoa Binh will supply 3D PCBs to iPhone assembly plants in India, as Apple expands AI features in its devices. With rising geopolitical risks, Apple and its suppliers, including Foxconn and TDK, are diversifying production to India and Vietnam. Apple aims to increase Indian iPhone output to 25% by 2027.
Nikkei Asia: https://asia.nikkei.com/Business/Electronics/Japan-s-Meiko-to-build-new-plant-in-Vietnam-for-iPhone-parts
▶ Fujitsu develops AI-powered device to assess tuna fat content
10 Apr, 2025
Fujitsu has developed an AI-powered ultrasonic inspection device that accurately measures the fat content of frozen albacore tuna without damaging the fish. The system, created in collaboration with Tokai University and Ishida Tech, uses ultrasound from four angles and AI analysis to assess marbling in just 12 seconds—far faster and more consistent than traditional human evaluations. Set to launch in June for ¥30–35 million ($204,000–$238,000), the device aims to improve efficiency in tuna grading and will be expanded to inspect other fish species and assess freshness and texture.
Asahi: https://www.asahi.com/ajw/articles/15705032
▶ 2025 Expo Osaka: Flying Car, Robots, VR Travel Await at Expo Site; Pieces of Moon and Mars Also to be Displayed
10 Apr, 2025
The 2025 Osaka-Kansai Expo, opening Sunday on Osaka’s artificial island Yumenoshima, showcases futuristic technology and global culture. Highlights include a demo flight of a flying vehicle by start-up SkyDrive, a humanoid robot guide in the China Pavilion, and a life-sized Gundam statue. The Japan Pavilion features a rare Martian meteorite, while the U.S. Pavilion displays a moon rock from 1972. Developing nations are featured in shared “Commons” pavilions, highlighting culture and trade, such as Kyrgyzstan’s nomadic tent and Zimbabwe’s VR experience of Victoria Falls. However, some exhibits remain incomplete ahead of the opening.
Yomiuri: https://japannews.yomiuri.co.jp/society/general-news/20250410-248231/
▶ Trump’s changing stance on Nippon Steel bid adds confusion, sends U.S. Steel shares lower
11 Apr, 2025
Former President Donald Trump's renewed opposition to Nippon Steel’s $14 billion bid for U.S. Steel caused the American company's shares to drop 7% on Thursday. Although Trump had recently ordered a new national security review of the deal, raising hopes for approval, his conflicting comments have added uncertainty. Business leaders are concerned about Trump's unpredictable stance on trade and investment, especially after his reversal on broad tariffs following market backlash. The U.S. government and the companies have asked a court to pause litigation over the deal until June 5 while the review continues.
Asahi: https://www.asahi.com/ajw/articles/15705814
▶ IHI Advances Development of Ammonia-Fueled Gas Turbines to Realize CO₂-Free Power Generation
11 Apr, 2025
IHI Corporation is developing ammonia-fueled gas turbines to enable CO2-free power generation. At its Aioi Works, IHI is conducting durability tests using clean ammonia, with the resulting decarbonization value to be contributed to the 2025 Osaka-Kansai Expo. In 2022, IHI, along with Tohoku University and AIST, successfully demonstrated 100% ammonia-fueled power generation under a NEDO-led project. Since July 2024, IHI has been testing the turbines under real-world conditions, confirming reduced N₂O and NOx emissions. Electricity from the tests is used on-site, supporting efforts toward a carbon-neutral society.
IHI: https://www.ihi.co.jp/en/all_news/2025/resources_energy_environment/1201378_13737.html
