Japan announced on Tuesday that they will be investing in three energy projects in the United States, totaling $40 billion. These investments are nearly mandatory as part of the trade agreement made with Donald Trump in exchange for affordable tariffs.
The trade agreement between Japan and the United States is starting to take shape. Donald Trump announced on Truth Social that Japan has committed to three American projects worth approximately $40 billion.
The Japanese press had previously revealed the details of these projects, including synthetic diamonds for semiconductors, a petroleum port terminal, and power plants to supply data centers built for AI. Trump emphasized, “The scale of these projects is so significant that it could not have been achieved without very specific words, TARIFFS,” he said.
He stated that the planned “thermal power plant” in Ohio (in the north of the United States) would be “the largest in history,” while the “liquefied natural gas (LNG) terminal” built in Texas will strengthen “our energy dominance.”
In his statement, Howard Lutnick, the Minister of Economy, mentioned a deepwater oil terminal in Texas that is expected to enable the export of “$20 to $30 billion worth of crude oil.”
Shared benefits before the United States takes (almost) everything
In exchange for a 15% reduction in American customs duties, Japan pledged last July to invest $550 billion by 2029. However, the implementation had been delayed due to disagreements on the exact terms and projects to be funded.
The agreement protocol stipulates that Washington has control over where Japanese investments go. The proposed projects will be reviewed by a joint Japanese-American committee before being selected and ultimately approved by Mr. Trump himself. Tokyo will then be required to secure the necessary financing within 45 days.
According to the protocol, Japanese and Americans will share the profits equally from each project until the Japanese investments are repaid. After that, 90% of the remaining profits will stay in the United States. Mr. Lutnick praised, “Japan provides the capital. The infrastructure is built in the United States. Revenues will be structured to allow Japan a return on investment and the United States to hold strategic assets and increased industrial capacity.”
