Japan unveils initial U.S. investments post-tariff deal

U.S. President Donald Trump on Monday unveiled the first U.S.-bound investment projects under the U.S.-Japan trade agreement, totaling $36 billion, in a post on Truth Social. The projects include a gas-fired power plant in Ohio, a crude oil export facility in Texas and a synthetic diamond manufacturing plant in Georgia.

With Japan’s initial investment plans now public, attention is shifting to South Korea, which also reached a trade agreement with the United States and is under growing pressure to move quickly on its own investment commitments. In July last year, Japan agreed to pursue $550 billion in U.S. investments in exchange for a reduction in tariffs from 25 percent to 15 percent.

In his post, Trump said the “massive” trade deal with Japan had finally begun and described it as “a very exciting and historic time for the United States and Japan.” Referring to the three projects, he said they would not have been possible without tariffs, which he described as a very important element, and added that the investments would strengthen U.S. energy dominance and end what he called “foolish” reliance on foreign minerals.

Japanese Prime Minister Sanae Takaichi wrote on X that the projects would strengthen bilateral ties in strategically significant sectors tied to economic security, including critical minerals, energy, artificial intelligence and data centers. She added that Japanese companies are expected to benefit from increased sales and expanded business opportunities related to the supply of facilities and equipment.

The New York Times reported that Washington had pressed Tokyo for months to present concrete investment plans. The newspaper described the announcement as an initial step toward fulfilling Japan’s investment pledges aimed at securing tariff reductions and maintaining stable ties with the United States. Citing unnamed sources, it added that the Japanese government is considering additional investment announcements around the time of Takaichi’s visit to the United States.


Woo-Sun Lim imsun@donga.com