Overview

• Japan’s government announced returns on the $550 billion investment will be allocated 10% to Japan and 90% to the United States based on each side’s contribution and risk.
• State-owned Japan Bank for International Cooperation and Nippon Export and Investment Insurance will provide loans and guarantees to back Japanese firms’ projects.
• President Trump will direct funds toward revitalizing U.S. industries such as energy infrastructure, semiconductor manufacturing, critical minerals, pharmaceuticals and shipbuilding.
• Key legal entities, governance frameworks and incentives for Japanese participants have yet to be specified, prompting calls for greater clarity.
• The pact pairs a 15% reciprocal tariff framework with the investment commitment as part of Washington’s strategy to leverage tariffs for market access and funding pledges.