Overview

• Under the provisional framework, U.S. tariffs on Japanese imports are capped at 15 percent in exchange for Japan’s financing pledge.
• Japan will channel the package through the Japan Bank for International Cooperation and Nippon Export and Investment Insurance, relying mainly on loans and guarantees with only 1–2 percent in equity.
• Equity returns will see the U.S. retain roughly 90 percent, while broader profit-sharing is to be calibrated according to each party’s risk and contribution.
• The investment vehicle is open to U.S., Japanese and other allied firms, including Taiwanese chipmakers such as TSMC constructing plants in America.
• Officials and analysts caution that governance structures, binding commitments and a clear disbursement timeline remain unresolved, prompting some to label the pledge “vaporware.”