Japan, U.S. race to finalize first projects under $550 billion deal

Japanese industry minister Ryosei Akazawa met U.S. Commerce Secretary Howard Lutnick in Washington on Thursday in an effort to finalize the first batch of projects before they are submitted to President Donald Trump for approval.

Akazawa said a “significant gap” remains and more coordination is needed to serve both countries’ interests. He added that talks are being conducted with a view to making Prime Minister Sanae Takaichi’s planned White House visit on March 19 productive.

The investment pledge stems from a trade deal reached in July last year after months of tariff negotiations. Japan committed to invest $550 billion in the United States by January 2029, the end of Trump’s second term, in return for reduced U.S. tariffs on Japanese cars and other goods.

The package combines investments, loans and loan guarantees backed by Japanese government-affiliated financial institutions and will focus on strategic sectors, such as critical minerals, semiconductors, artificial intelligence and energy.

Potential projects in the first tranche include gas-fired power plants for data centers, synthetic diamond production for semiconductor use, and port development, Japanese officials said.

Under a memorandum signed in September, Trump will make the final decision on projects recommended by a U.S.-led investment committee. Once endorsed, Japan will have 45 days to review and transfer funds.

Earlier, Qazinform News Agency reported that Japan opposition turned to two-man contest after historic loss.