U.S. Commerce Secretary: Follow-up Agreement on Japan's $550 Billion Investment in the U.S. to Be Announced This Week
Howard Lutnick, U.S. Secretary of Commerce, announced that a follow-up agreement regarding Japan's $550 billion investment in the United States, which was agreed upon during the U.S.-Japan tariff negotiations, will be announced later this week.
On the 25th (local time), Secretary Lutnick stated this on Fox News, adding that a senior Japanese trade envoy is scheduled to visit Washington to formalize the investment plan.
He added that Japan's investment could be used for manufacturing products such as semiconductors, antibiotics, and rare earth elements in the United States.
Reuters, citing sources, reported that Ryosei Akazawa, Japan's Minister for Economic Revitalization and chief negotiator, plans to visit the United States this week to draft documents detailing the agreement, including the method for distributing investment returns.
In July, the United States and Japan agreed that, in exchange for Japan making a $550 billion investment in the United States, tariffs on Japanese imports would be reduced to 15%. However, the two sides have conflicting claims regarding the details of the agreement.
U.S. President Donald Trump stated that the Japanese investment is "funds we will invest," asserting that the United States will take 90% of the resulting profits. In contrast, Japan claims that its share of the investment is only 1-2%, and profits will be distributed according to the contribution ratio.
There also appear to be differences over the legal binding force of the agreement document. The United States has requested a written agreement from Japan regarding the investment plan, but according to the Nihon Keizai Shimbun, Japan prefers to maintain the agreement in a form with limited legal binding force.
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At a regular briefing on the 26th, Minister Akazawa stated that his schedule for visiting the United States this week had not been finalized and declined to comment on Secretary Lutnick's remarks.
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