Japan and the United States are moving to accelerate a plan in which Japan will direct US$550 billion in investment into the U.S., part of a wider trade arrangement aimed at reducing tariffs imposed by President Donald Trump.
In a statement issued Wednesday, Japan’s Foreign Ministry said, “Ministers are aligned on expediting preparations so that the first project under the Strategic Investment Initiative could be announced as early as possible.”
Discussions regarding the inaugural project took place Tuesday night, attended by Japanese Trade Minister Ryosei Akazawa, U.S. Secretary of Commerce Howard Lutnick, and Secretary of Energy Chris Wright, according to the release.
The opening meeting for the Strategic Investment Initiative was held last week, officially beginning the selection process for the investment framework. After the consultation panel finalizes its negotiations, its recommendations will be passed to an investment committee chaired by Lutnick. The ultimate approval for any projects will rest with President Trump, guided by the committee’s advice.
Under the terms of the deal, Japan must commit funds to a project within 45 days of Trump’s decisions, or face the prospect of higher tariffs.
Trump had threatened to increase tariffs on Japanese goods to 25% earlier in the year, but ultimately reduced this to 15% for most products after Japan agreed to boost its investment by US$550 billion in the U.S.
