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US President Donald Trump has announced that Japan is proceeding with the first tranche of projects under its $550 billion investment pledge to the United States.
“Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America,” Trump wrote on his Truth Social platform.
“The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” he added.
The announcement follows Trump’s October visit to Japan and comes ahead of Japanese Prime Minister Sanae Takaichi’s scheduled visit to the White House next month.
The programmes will “strengthen the Japan–US alliance by enabling Japan and the United States to jointly build resilient supply chains in strategically important areas for economic security—such as critical minerals, energy, and AI/data centres,” Takaichi stated on Wednesday.
“We believe these initiatives truly embody the purpose of this Strategic Investment Initiative, namely the promotion of mutual benefit between Japan and the United States, the enhancement of economic security, and the promotion of economic growth.
“Going forward, we will continue to work closely together between Japan and the United States to further refine the details of each project and ensure that they can be implemented promptly and smoothly.”
‘Massive America First Trade Win’
The projects include a natural gas facility in Ohio, a deep-water oil export terminal in the Gulf of Mexico, and a synthetic diamond manufacturing plant.
US Trade Secretary Howard Lutnick described the developments as a “MASSIVE AMERICA FIRST TRADE WIN”.
He said the gas-powered generation facility would be the largest ever constructed, producing 9.2 gigawatts of electricity.
Takaichi noted that the plant would supply power to AI data centres and similar operations. At full capacity, it would generate the equivalent output of nine nuclear reactors or meet the electricity needs of approximately 7.4 million homes, according to Bloomberg News.
Lutnick said the oil export project could generate between $20 billion and $30 billion annually in US crude exports, reinforcing the country’s position as a leading global energy supplier.
The synthetic diamond grit facility — in a sector currently dominated by China — is intended to reduce US dependence on foreign imports.
“Japan is providing the capital (for all three projects). The infrastructure is being built in the United States,” Lutnick said.
“The proceeds are structured so Japan earns its return, and America gains strategic assets, expanded industrial capacity, and strengthened energy dominance,” he added.
‘Rebuild and Expand’
In July, Tokyo agreed to invest $550 billion by 2029 “to rebuild and expand core American industries,” according to the White House.
The commitment was made in return for a reduction in proposed US tariffs on Japanese imports from 25 per cent to 15 per cent.
Japan’s trade minister, Ryosei Akazawa, has indicated that only one to two per cent of the pledged sum would constitute direct capital investment.
The remainder would consist of bonds and loans from the Japan Bank for International Cooperation, alongside credit facilities backed by public guarantees.
With Takaichi’s planned visit to the White House scheduled for 19 March, reports suggest tensions have been mounting.
In January, Trump warned South Korea—which had pledged to invest $350 billion—that tariffs could be raised if it was “not living up to its Deal”.
Analysts caution that Japanese firms may remain hesitant due to uncertainty about administrative and financial procedures and concerns about labour shortages in the United States.
