Japan’s $550 billion investment pledge might fall short of Trump’s hopes

Japan’s $550 billion investment pledge might end up falling short of the headline number and might become something more akin to routine investment — rather than a blank check for U.S. President Donald Trump to use as he sees fit — as negotiations over implementation continue and Tokyo focuses on the fine print of the agreement.

“I don’t think that agreement’s ever going to be implemented the way it is. I don’t think it’s going to happen,” said Richard Katz, an economist specializing in Japan. “I think Japan is like, yessing the U.S. to death, like the real negotiation is going on now.”

In the trade deal reached by the two countries on July 22, Japan agreed to invest $550 billion in critical industries and technologies in the United States, in exchange for lower tariffs on Japanese automobiles and other products.