The United States has announced the first tranche of Japanese investments under a massive $550 billion commitment agreed as part of a trade deal with President Donald Trump, signaling early movement on promises made by Tokyo in exchange for reduced US tariffs.
The initial package, valued at $36 billion, will fund three major infrastructure projects in the United States, as Japan faces growing pressure to demonstrate tangible progress on last year’s pledge.
Reacting to the development, Trump said the investments underscored the effectiveness of his trade strategy.
“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 account.
“The scale of these projects are so large, and could not be done without one very special word, TARIFFS,” he added.
The announcement comes ahead of a planned visit by Japanese Prime Minister Sanae Takaichi to the White House next month, following Trump’s trip to Japan in October.
Takaichi said the projects would deepen economic cooperation and strengthen supply chain security between both countries.
“They will strengthen the Japan–US alliance by enabling Japan and the United States to jointly build resilient supply chains in strategically important areas for economic security — such as critical minerals, energy, and AI/data centers,” she said in a post on X.
“We believe these initiatives truly embody the purpose of this Strategic Investment Initiative, namely the promotion of mutual benefit between Japan and the United States, the enhancement of economic security, and the promotion of economic growth,” she added.
According to the Japanese leader, officials from both sides will continue to refine project details “to ensure that they can be implemented promptly and smoothly.”
The projects include a large-scale natural gas generation facility in Ohio, a deep-water oil export terminal in the Gulf of Mexico, and a synthetic diamond manufacturing plant aimed at reducing reliance on foreign supplies.
US Trade Secretary Howard Lutnick described the investments as a “MASSIVE AMERICA FIRST TRADE WIN.”
He said the Ohio gas facility would be the largest of its kind, generating 9.2 gigawatts of power, enough to supply electricity to AI data centers and other energy-intensive facilities.
At full capacity, the plant would produce power equivalent to about nine nuclear reactors or electricity for roughly 7.4 million homes, according to Bloomberg News.
Lutnick added that the oil export facility could generate between $20 billion and $30 billion annually in US crude exports, reinforcing America’s role as a leading global energy supplier.
On the synthetic diamond project, he said it would end US dependence on foreign imports in a sector currently dominated by China.
“Japan is providing the capital (for all three projects). The infrastructure is being built in the United States,” Lutnick said. “The proceeds are structured so Japan earns its return, and America gains strategic assets, expanded industrial capacity, and strengthened energy dominance.”
Japan agreed in July to invest $550 billion through 2029 “to rebuild and expand core American industries,” in return for the reduction of threatened US tariffs on Japanese imports from 25 percent to 15 percent.
However, Japan’s trade minister, Ryosei Akazawa, has said that only one to two percent of the total amount would be direct capital, with the rest coming through bonds, loans from the Japan Bank for International Cooperation, and publicly guaranteed credits.
With Takaichi’s March 19 White House visit approaching, reports suggest tensions had been rising over the pace of implementation.
Earlier this year, Trump warned South Korea — which pledged $350 billion under a similar deal — that tariffs could be raised for failing to meet its commitments.
Analysts note that some Japanese firms remain cautious, citing uncertainties around administrative procedures, financing structures, and persistent US labor shortages.
