Japan’s $550-B Investment Pledge to Trump May Fall Short

Japan’s $550-billion investment pledge to the United States could end up being smaller in scope than the headline figure suggests, as negotiations over implementation continue and Tokyo scrutinizes the details, Francis Tang reported for Japan Times.

Under the September memorandum of understanding, an investment committee chaired by U.S. Commerce Secretary Howard Lutnick will recommend projects before they are approved by President Trump. (Photo: Ministry of Foreign Affairs of Japan) 

“I don’t think that agreement’s ever going to be implemented the way it is. I don’t think it’s going to happen,” said economist Richard Katz, a Japan specialist.

“I think Japan is like, yessing the U.S. to death, while the real negotiation is going on now.”

The July 22 trade deal saw Japan agree to invest $550 billion in critical U.S. industries and technologies in exchange for lower tariffs on Japanese automobiles and other products.

Under the September memorandum of understanding, an investment committee chaired by U.S. Commerce Secretary Howard Lutnick will recommend projects before they are approved by President Trump.

Japan will provide input on feasibility through consultations. All investments must be made before the end of Trump’s term.