Japan and U.S. make progress on $550 billion investment pact
Japan and the U.S. have made progress on a $550 billion investment program established under last year's trade agreement. The two countries plan to place particular emphasis on artificial intelligence and semiconductors in the next round of projects.
According to Bloomberg, Japanese Trade Minister Ryosei Akazawa announced the progress after talks in Washington with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.
Akazawa declined to disclose details of the third tranche of investments but said projects involving AI and chip manufacturing would carry "very significant weight."
"As the importance of the artificial intelligence and semiconductor industries grows, we continue to develop and implement projects that deliver mutual benefits," the minister said.
First projects total $109 billion
The $550 billion investment initiative was a key part of the trade agreement between the two countries. Under the deal, U.S. President Donald Trump agreed to set tariffs on Japanese goods at 15% and lower duties on automobiles, one of Japan's most important export industries.
The first tranche calls for $36 billion in investment in U.S. oil, gas and mineral projects. These include the construction of a natural gas facility in Ohio.
The second tranche is worth another $73 billion. The funds are expected to support a nuclear power project in Tennessee and Alabama, as well as natural gas power plants in Pennsylvania and Texas.
The projects announced so far therefore total about $109 billion. The next stage is expected to expand the program into technology sectors, including artificial intelligence and semiconductors.
U.S. will not impose additional tariffs
Following the talks, the two sides also reaffirmed the terms of last year's trade agreement. According to Akazawa, the U.S. does not plan to impose additional tariffs on Japanese goods beyond those already agreed.
The agreement reduces the risk of renewed trade pressure on Japanese exporters, particularly automakers. Tariff conditions remain an important factor for the country's economy because of its dependence on exports to the U.S.
The talks come amid changes in Japan's domestic financial market. The yield on the country's benchmark 10-year government bond recently reached 3% for the first time since 1996.
Rising yields reflect growing inflation and fiscal risks, as well as expectations of further changes in monetary policy. Japan's debt market is gradually moving away from its long period of ultra-low interest rates.
Earlier, we reported that Japanese business leaders were urged to support efforts to strengthen the country's economic capabilities and develop deterrence mechanisms. The initiatives reflect a broader push to improve Japan's resilience amid changes in the global trade and geopolitical environment.
Latest Tariffs News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
