The Japan US investment deal has taken a major step forward as President Donald Trump announced the first round of Japanese funding under a new bilateral trade agreement. Ahead of Japanese Prime Minister Sanae Takaichi’s upcoming visit to Washington, the United States confirmed that Japan will invest 36 billion dollars into key American energy and critical minerals projects.
According to the US Commerce Department, the funded projects include a natural gas facility in Ohio, a crude oil export facility in the Gulf of Mexico, and a synthetic industrial diamond manufacturing plant in Georgia. These initiatives are part of Japan’s broader pledge to invest 550 billion dollars in the United States by 2029 to strengthen core American industries.
The Ohio natural gas facility is expected to produce 9.2 gigawatts of power, significantly supporting domestic energy supply. Meanwhile, the crude oil export facility could generate between 20 and 30 billion dollars annually in US crude exports. The diamond manufacturing plant aims to meet 100 percent of US demand for synthetic diamond grit, which is a crucial material for advanced industrial and technological production.
President Trump emphasized that these investments represent the first financial move under Japan’s large commitment. He highlighted the role of tariffs in encouraging the agreement, noting that Japan had secured a reduction in threatened US tariffs from 25 percent to 15 percent in exchange for the investment pledge.
However, Japanese trade minister Ryosei Akazawa clarified that only a small portion of the 550 billion dollars would be direct capital investment. The remaining funds will consist of bonds and loans from the Japan Bank for International Cooperation along with state guaranteed credits.
As diplomatic discussions continue, the implementation of this trade pact is expected to be a central focus during Takaichi’s White House meeting, shaping future economic cooperation between the two nations.
