Japan and the United States have taken further steps towards implementing a $550 billion investment initiative, with artificial intelligence and semiconductor projects expected to dominate the next phase of the agreement.
Ryosei Akazawa, Japan’s trade minister, said Tokyo and Washington would continue working closely on the investment vehicle after meetings in Washington with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer.
Mr Akazawa did not disclose details of a possible third group of projects. However, he said discussions on AI and chips would carry “very significant weight” as the two governments seek investments that deliver benefits to both countries.
AI and semiconductor investment in focus
The initiative was agreed as a central part of last year’s US-Japan trade deal. Under the arrangement, the Trump administration capped tariffs on Japanese goods at 15 per cent and reduced duties on Japanese automobiles.
The first package of projects, announced in February, was valued at about $36 billion and covered oil, gas, power generation and critical minerals. It included plans for a major natural gas facility in Ohio, a crude oil export project and a manufacturing plant for synthetic industrial diamonds used in advanced manufacturing.
A second package announced in March involved up to $73 billion for energy projects. It included small modular nuclear reactors in Tennessee and Alabama, as well as natural gas generation facilities in Pennsylvania and Texas, with some of the planned power supply intended for data centres.
The two countries have also confirmed that Japan will not face additional tariffs beyond the terms set out in the trade agreement, a move intended to provide greater certainty for Japanese manufacturers and investors.
Future announcements are expected to focus increasingly on strategic industries, including AI infrastructure and semiconductor supply chains, as Tokyo and Washington seek to strengthen economic security and reduce their dependence on vulnerable overseas supply networks.
