February 18, New Delhi: The United States announced on Tuesday the first installment of Japanese investments under a massive $550 billion commitment linked to a trade deal with President Donald Trump.
The initial commitments, totaling $36 billion for three infrastructure projects, come as Japan faces pressure to fulfill pledges made in 2025 in exchange for reduced U.S. trade tariffs.
U.S. President Donald Trump called the announcement a major trade victory, stating that tariffs played a crucial role in securing the agreement. Japanese Prime Minister Sanae Takaichi said the projects would strengthen the Japan-U.S. alliance and help develop resilient supply chains in key sectors such as energy, minerals, and AI data centers. She added that both countries would coordinate closely to ensure smooth and timely implementation.
The investments were agreed upon in 2025 in return for lower U.S. tariffs on Japanese imports. Analysts note that Japanese companies remain cautious due to administrative uncertainties and labor concerns in the United States.
The announcement came ahead of Prime Minister Sanae Takaichi's scheduled visit to the White House next month, following President Trump's trip to Japan in October.