Finance Minister Katayama Explains Tariffs, Household Assets and Exchange Rates

At a press conference on July 24, 2026, Finance Minister and Minister of State for Special Missions Katayama explained the government's response concerning fiscal and financial policy. The main topics were trade remedies, household asset formation, foreign exchange markets, regional financial institutions and economic measures.

For the subject steel products from China and South Korea, the Ministry of Economy, Trade and Industry and the government have conducted a joint investigation since August 2025 and found in the interim report that imports were unfairly priced and that domestic producers had suffered injury.

The dumping margins were up to approximately 69% for Chinese products and up to approximately 43% for South Korean products relative to export prices.

If provisional tariffs are implemented, they will affect the price conditions of the subject imports and the competitive environment for domestic producers. The government will build on the investigation findings toward the start of taxation after the recommendation and the final decision.

Households are expected to gain wider investment opportunities, while concerns remain that people facing market volatility risks or with limited capacity to invest could be left behind. The minister said that sustained positive real wage growth is a prerequisite for investment capacity and a virtuous cycle.

Regarding foreign exchange, the minister refrained from commenting on the specific level at hand and emphasized curbing excessive fluctuations and maintaining careful dialogue with markets. In regional areas, the consolidation and strengthening of financial institutions in response to population decline will be challenges affecting regional financial strength and corporate value.

The referral to the Customs and Foreign Exchange Council is scheduled for July 30, 2026, and after its recommendation, additional tariffs based on the dumping margins will be imposed provisionally as early as August 2026. The investigation will continue toward a final decision by early December 2026.

Under the financial strategy, the share of stocks, investment trusts and bonds will be roughly doubled from its level in March 2025 and raised to 40%, comparable to Europe, by 2040. Measures include improving NISA convenience, publicizing its adoption and continued use, and improving the systems for corporate DC plans and iDeCo.

The Financial Services Agency will work with organizations such as J-FLEC to advance financial and economic education tailored to life plans, enabling people from younger to older generations to invest within reasonable limits. Corporate governance reform, the sophistication of asset management services and customer-focused asset-owner reforms will also continue.

In line with the joint statement by the finance ministers of Japan and the United States, the two sides are holding close consultations on foreign exchange 24 hours a day, 365 days a year. No specific yen exchange-rate level was indicated, and the minister said that firm measures would be decisively taken when necessary. Regarding economic measures, she said that reductions in electricity and gas prices began in July 2026 and that gasoline measures remain in place, indicating that the government is not currently in a situation to discuss additional measures.