The United States has announced the first tranche of investments from Japan under a massive $550 billion trade commitment agreed in 2025.
US President Donald Trump said Japan is moving forward with an initial $36 billion package covering three major infrastructure projects.
The projects include a large natural gas generation facility in Ohio, a deep-water oil export facility in the Gulf of Mexico, and a synthetic diamond manufacturing plant aimed at reducing reliance on foreign imports.
Trump described the agreement as a major trade victory, linking the investments to tariff negotiations between the two countries.
Japanese Prime Minister Sanae Takaichi said the projects would strengthen the Japan–US alliance and help build resilient supply chains in critical minerals, energy, and artificial intelligence infrastructure.
US Trade Secretary Howard Lutnick called the announcements a “massive America First trade win,” highlighting the scale of the natural gas facility, expected to generate 9.2 gigawatts of power.
The oil export facility is projected to generate between $20 and $30 billion annually in crude exports, reinforcing the US position as a leading energy supplier.
Under the broader agreement, Japan pledged $550 billion in investments through 2029 in exchange for reduced US tariffs on Japanese imports.
However, analysts note that much of the funding will be structured through bonds, loans, and public guarantees rather than direct capital investment.
The developments come ahead of a scheduled White House visit by Takaichi next month, as both nations seek to deepen economic cooperation while navigating global trade tensions.
