Japan's Trade Minister Ryosei Akazawa told reporters in Washington on Friday that work is progressing, adding, "We'll continue working closely with the US." His comments followed meetings with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
The $550 billion program was launched as a cornerstone of last year's tariff arrangement. Under that deal, US President Donald Trump agreed to apply 15% levies on Japanese products and to lower the duty on automobiles, a sector that looms large for Japan's economy. Akazawa also said the two governments affirmed that no new tariffs would be added on Japan beyond what was agreed last year.
Akazawa declined to go into specifics on a potential third batch of projects. So far, two phases have been laid out. The first sets aside $36 billion for US oil, gas and mineral investments, with one item being a natural gas plant located in Ohio. The second aims to direct $73 billion toward a nuclear power project spanning Tennessee and Alabama, along with gas-fired power stations in Pennsylvania and Texas. He added that discussions on artificial intelligence and semiconductors will carry "very significant weight," saying, "As the presence of AI and semiconductor industries grows, we're continuing to develop and implement projects that contribute to mutual benefits."
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This is big-picture industrial policy with real money attached. Energy and power projects are getting early attention, while AI and chips are being teed up for heavier collaboration. If this pipeline keeps advancing and the tariff truce holds, expect more US projects with Japanese capital behind them and fewer trade surprises that whipsaw prices.
