Japan unveils plans for US investments

Deals worth $36bn aimed at tariff relief

- RIVER AKIRA DAVIS ANA SWANSON

President Trump and Prime Minister Sanae Takaichi in Tokyo in October.

The US government outlined tens of billions of dollars in planned Japanese investments in the United States as part of a trade agreement struck last year, marking the start of a massive pledge that has faced domestic frictions and financing hurdles.

In a statement late Tuesday, US Commerce Secretary Howard Lutnick said Japan would provide capital for three projects: a natural gas plant in Ohio, a crude oil export facility along the US Gulf Coast, and a synthetic diamond manufacturing site in Georgia. The projects represent a $36 billion commitment and are expected to generate thousands of jobs, Mr Lutnick said.

The energy and manufacturing projects are the first phase of funding under a trade framework agreed in July, under which Tokyo pledged $550 billion in funding to US-based projects. In exchange, the Trump administration agreed to impose a 15% blanket tariff on Japanese exports — a reprieve from the higher duties it had threatened.

For months, US officials have pressured their Japanese counterparts to move forward with concrete investment plans. For members of the Trump administration, especially Mr Lutnick, the goal was to maintain momentum following President Donald Trump's visit to Japan in October.