The US and Japan have revealed the first list of potential projects under Tokyo's commitment to invest $550 billion in the United States as part of a trade agreement, the White House said Tuesday.
Japan agreed to invest $550 billion in the US in return for a 15% base tariff on nearly all Japanese imports entering the country, down from the 24% that US President Donald Trump initially proposed.
As part of the agreement, Japan will invest up to $332 billion in critical US energy infrastructure including nuclear reactors and power plants through partnerships with Westinghouse, GE Vernova and Hitachi.
An additional $25 billion will support large-scale power equipment like gas turbines, and $25 billion will go toward electrical substation equipment with Toshiba.
The deal also includes $30 billion for artificial intelligence (AI) infrastructure in collaboration with Mitsubishi Electric and $20 billion for optical fiber cables with Fujikura.
Japan also plans to invest $15 billion in advanced electronics with Murata Manufacturing and $15 billion in energy storage systems with Panasonic.
“Japan will continue to strive for the sincere and prompt implementation of the agreement with the US,” said Japan’s new trade minister, Ryosei Akazawa.
“Through this, we intend to promote the mutual interests of Japan and the US, expand cooperation aimed at ensuring economic security, and foster Japan’s economic growth,” he added.
US Commerce Secretary Howard Lutnick said in an interview with Bloomberg that the pledges, which total up to $490 billion, are in a “launch phase,” with preliminary work on projects that would then be considered for funding from the $550 billion program.
“They’ll do the precision work, and it’ll go through the process with the Japanese consultation committee, the investment committee, and the president will give it the green light, and then they’ll start to put shovels in the ground,” he said.
The two sides also signed a memorandum of understanding (MoU) focusing on strengthening bilateral ties in key areas of science and technology, including AI, quantum technologies and biotechnology.
US trade in goods and services with Japan reached an estimated $319.2 billion in 2024, according to US data.
By Berk Kutay Gokmen
Anadolu Agency
energy@aa.com.tr
