The United States is set to announce Japan’s $550 billion investment package later this week, Commerce Secretary Howard Lutnick confirmed Monday. The announcement is expected to coincide with a visit to Washington by Japan’s top trade negotiator, Ryosei Akazawa.
Lutnick told Fox News that the funds would be “at the hand of Donald Trump,” noting that they could support U.S.-based production of semiconductors, antibiotics, and rare earths. The package stems from a July trade deal, under which Washington lowered tariffs on Japanese imports to 15% in exchange for the massive investment pledge.
While details remain unclear, Japanese officials have emphasized that projects must also serve Japan’s interests. Reports suggest Tokyo prefers a less legally binding framework, while Washington is pressing for a written agreement.
Confusion in Japan over tariff levels prompted clarifications earlier this month from Lutnick and Treasury Secretary Scott Bessent, who confirmed Japanese goods would avoid overlapping levies. They also pledged that tariffs on Japanese cars would fall from 27.5% to 15%, though no timeline was given.
Prime Minister Shigeru Ishiba has argued against a formal treaty, seeking instead a quick resolution to ensure reduced tariffs on key exports. His stance has boosted his popularity, with recent polls showing a rise in approval despite his coalition’s recent upper house election setback.