Japan’s top trade negotiator Ryosei Akazawa has downplayed concerns over the recently announced $550 billion US investment framework, revealing that only 1–2% of the package will involve actual equity investments. The majority will come in the form of loans and government-backed loan guarantees, with Japan expected to collect interest payments and fees.
Akazawa emphasized that Tokyo will also save about ¥10 trillion ($68 billion) through reduced tariffs under the deal, which includes a 15% levy on Japanese cars and other goods. While the US will retain 90% of profits from the small equity portion, Akazawa argued that Japan’s overall losses would amount to just “a couple of tens of billions of yen.”
“It’s not that $550 billion in cash will be sent to the US,” he said, rejecting claims that Japan had “sold out.” He added that the program would also support non-Japanese firms, citing a Taiwanese semiconductor company building a plant in the US as an example.
The investment plan, to be managed by Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), is expected to be rolled out during President Trump’s current term. Full implementation details, including the timing of tariff reductions and activation of the investment vehicle, remain unclear, as no joint document has been signed.
Japan expects US tariffs on its exports to fall to 15% by August 1, with Tokyo pressing for swift action on car tariffs. The Trump administration has hailed the deal as a blueprint for similar agreements, following a parallel accord with the European Union that will see $600 billion invested in the US.
