Japan’s first US investments under a $550 billion pact include LNG, power and minerals projects, announced ahead of Prime Minister Takaichi’s Washington visit.

WASHINGTON: President Donald Trump announced the first set of Japanese investments in US energy and critical minerals projects under a major bilateral trade pact.

The announcement comes ahead of Japanese Prime Minister Sanae Takaichi’s scheduled visit to Washington next month.

“Japan is now officially, and financially, moving forward with the FIRST set of Investments under its $550 BILLION Dollar Commitment to invest in the United States of America,” Trump wrote on his Truth Social platform.

He identified three initial projects: a liquefied natural gas facility in Texas, a gas power plant in Ohio, and a critical minerals facility in Georgia.

Trump did not provide details on the financing or the specific companies involved.

The statement follows recent comments from Japanese trade minister Ryosei Akazawa, who acknowledged “significant gaps” between the two sides on selecting the first projects.

Akazawa maintained both sides saw a way forward, adding there would be no “high-risk, high-return ventures.”

In July, Tokyo agreed to invest $550 billion through 2029 to rebuild and expand core American industries, a move the White House said would generate hundreds of thousands of US jobs.

The investment pledge was made in exchange for the US reducing threatened tariffs on Japanese imports from 25% to 15%.

Akazawa has clarified that only 1% to 2% of the $550 billion would be actual capital investment.

The remainder will consist of bonds, loans from the Japan Bank for International Cooperation, and credits guaranteed by the Japanese state.

With Takaichi’s White House visit set for March 19, media reports indicate negotiations have been tense as both sides work to finalise details.

The trade and economic agreement is expected to be a key agenda item during the upcoming leaders’ meeting.

Trump credited tariffs for enabling the large-scale projects.

“The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” he wrote.

 The Sun Malaysia