Japan USD550bn investment initiative in the US will only have 1 – 2% of equity investement | investingLive

Japan has agreed to a $550 billion investment initiative in the United States in order to secure reduced tariffs on Japanese exports, according to Japanese officials speaking to NHK.

The investment will be channelled through state-owned institutions — the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) — and will primarily consist of loans and guarantees. Equity investment will account for just 1–2% of the total package.

Japanese negotiator Akazawa clarified that the U.S. retaining 90% of profits, as mentioned by the White House, refers only to the small equity portion, not the entire investment. Japan had initially sought 50% of the equity returns, but officials view the concession as a minor loss compared to the ¥10 trillion (~$68 billion) in tariffs Japan stands to avoid.

The package is part of a broader effort to build secure supply chains in critical sectors, with Japan aiming to deploy the funds during Trump’s current term.

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Japan and the US reached their deal last week: