Japan has agreed to a large investment plan worth $550 billion aimed at the United States. This investment includes equity, loans, and guarantees. In return, Japan expects to receive lower tariffs on its exports. However, the full structure of this agreement is still unclear.
According to Japanese officials who spoke to public broadcaster NHK, most of the investment will be in the form of loans and guarantees. Only a small portion—about 1% to 2%—will be equity investments. The Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), both state-owned, will manage these funds.
Japanese official Akihisa Nagashima clarified a recent White House comment, which said the U.S. would keep 90% of the profits from the package. He explained that this applies only to the equity portion, which is a very small part of the $550 billion. Originally, Japan had hoped to receive half of the profits. But now, Japan believes the profit loss is small compared to the huge benefit of avoiding about 10 trillion yen (around $67.72 billion) in tariffs.
Akazawa added that Japan, the U.S., and other like-minded nations are working together to build strong and secure supply chains. These efforts focus on industries that are important for economic security.
Japan hopes to complete this $550 billion investment during President Donald Trump’s current term.
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