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

Trade minister Ryosei Akazawa announced that Japan is making strides in a $550 billion investment pact with the United States, established as part of a trade agreement last year. Speaking to reporters in Washington following discussions with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, Akazawa stated that the two nations remain committed to working together closely on the initiative.

While details on the upcoming third round of projects were not disclosed, Akazawa emphasized that discussions surrounding artificial intelligence and semiconductor industries will carry substantial importance. He affirmed that as these sectors continue to expand in significance, Japan will continue to develop projects that benefit both nations.

The $550 billion fund was designed to stimulate Japanese investment in crucial U.S. industries, serving as a crucial element of the tariff deal negotiated last year. Under this agreement, the U.S. agreed to impose a 15% tariff on Japanese products while reducing duties on automobiles, a vital factor for Japan's economy. The initial phase of the investment plan aims to allocate $36 billion towards U.S. oil, gas, and mineral projects, including a natural gas facility in Ohio.

The second phase is projected to generate $73 billion in investments for a nuclear power project spanning Tennessee and Alabama, as well as natural gas power plants in Pennsylvania and Texas. Akazawa confirmed that no additional tariffs will be imposed on Japan beyond the terms of the initial agreement.