Japan says progress made on $550 billion investment pact with U.S.

Trade minister Ryosei Akazawa said progress was being made on a $550 billion investment initiative set up as part of a trade deal with the U.S. last year. 

“We’ll continue working closely with the U.S.,” Akazawa said. He spoke to reporters in Washington on Friday after meeting with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. 

Akazawa declined to comment in detail on a third tranche of projects under the pact. So far, two rounds of projects have been announced including resource-related deals and power plants. He said that discussions on artificial intelligence and chips will carry “very significant weight.”  

“As the presence of AI and semiconductor industries grows, we’re continuing to develop and implement projects that contribute to mutual benefits,” Akazawa said.

The $550 billion vehicle was set up to spur a wave of Japanese investment in key U.S. industries and was a central pillar of the tariff deal last year, under which U.S. President Donald Trump agreed to set levies at 15% on Japanese products and lower the duty for automobiles, a critical driver for Japan’s economy. 

The first batch of projects aims to invest $36 billion in U.S. oil, gas and mineral projects, including a natural gas facility in Ohio. The second group eyes $73 billion investments for a nuclear power project across Tennessee and Alabama and natural gas power plants in Pennsylvania and Texas. 

The two sides confirmed that no additional tariffs would be imposed on Japan beyond last year’s agreement, Akazawa said.