26.08.202504:38:41UTC+00U.S. to Reveal Japan’s USD 550 Billion Investment Deal: Lutnick

The United States is planning to unveil a $550 billion Japanese investment initiative this week, as reported by Commerce Secretary Howard Lutnick on Monday. This investment aims to bolster U.S. production in critical sectors such as semiconductors, antibiotics, and rare earths. The agreement, initially reached in July, involves a reduction in tariffs on Japanese imports to 15%, facilitated by investment through government-backed loans and guarantees. While former President Trump referred to this as "our money to invest, as we like," Japanese officials highlighted the mutual advantages of the deal. Tokyo has expressed a preference for a non-binding agreement, resisting Washington’s desire for a formal written accord. There was some initial confusion regarding the tariff rates, which was later clarified by Lutnick and Treasury Secretary Scott Bessent, who outlined exemptions and modifications to previous directives. Prime Minister Shigeru Ishiba noted that Japan sidestepped a formal pact to hasten tariff relief, particularly for automobile exports.