US President Donald Trump announced that Japan has started investing in American energy and critical mineral projects. He said this marks the first phase of a broader trade commitment between Japan and the United States.
The announcement comes weeks before Japanese Prime Minister Sanae Takaichi plans to visit Washington. Leaders will likely focus on economic cooperation during the meeting.
The US Commerce Department said the first set of projects is worth $36 billion. This move shows that Japan has started delivering on its larger promise to invest $550 billion in the US.
Trump praised the development on social media. He wrote, “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,”
Projects target energy and manufacturing
The new investments cover three major sectors: natural gas power, crude oil exports, and advanced manufacturing.
Japan will support a natural gas power facility in Ohio. The plant will produce 9.2 gigawatts of electricity. It will strengthen US energy capacity.
Developers will also build a crude oil export facility in the Gulf of Mexico. Officials expect the project to generate between $20 billion and $30 billion per year in crude exports.
In addition, companies will set up a synthetic industrial diamond plant in Georgia. Trump said the facility will boost US industrial independence. The Commerce Department stated that it will “onshore production 100 percent of US demand for synthetic diamond grit,” and called it “a critical input for advanced industrial and technological production.”
Trump first mentioned a liquefied natural gas plant. However, the department clarified that the investment supports broader natural gas-powered infrastructure.
Officials have not yet revealed the companies involved or the financing structure.
Trade deal drives investment push
Japan agreed last July to invest $550 billion in the US by 2029. In return, Washington reduced planned tariffs on Japanese goods from 25 percent to 15 percent.
Japanese Trade Minister Ryosei Akazawa said only one to two percent of the total would be direct capital investment. Most funds will come through loans, bonds issued by the Japan Bank for International Cooperation, and government-backed guarantees.
Leaders prepare for key meeting
Takaichi will meet Trump at the White House on March 19. Some reports suggest both sides had concerns about how quickly the deal was moving forward.
Still, Trump linked the investments to his tariff strategy. He wrote, “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”