Trump Announces Massive U.S.–Japan Trade Deal With $550B Investment Pledge
U.S. President Donald Trump officially announced that Japan has launched the first investments under a historic $550 billion trade and investment agreement with the United States — a pact aimed at strengthening economic ties and boosting American industrial capacity. The deal — agreed in 2025 — includes an initial $36 billion in Japanese-backed projects across energy, infrastructure and industrial sectors.
Under the arrangement, Japan will finance three major ventures in the U.S.:
👉 A $33 billion natural gas-fired power plant in Ohio — projected to be the largest of its kind.
👉 A $2.1 billion deepwater crude oil export terminal in Texas.
👉 A $600 million synthetic industrial diamond plant in Georgia, critical for manufacturing and semiconductor use.
These are the first tranches of Japan’s broader investment pledge under the framework of the trade deal it struck with the Trump administration.
The pact also entails tariff adjustments — including a 15 % tariff rate on Japanese imports, part of reciprocal terms aimed at deepening market access while balancing trade relationships. President Trump framed the agreement as a key step in revitalising U.S. manufacturing, securing energy infrastructure, and creating jobs, and said the projects could strengthen economic security for both nations.
This agreement marks a significant milestone in bilateral economic cooperation between the world’s two largest economies, touching on energy, critical minerals, industrial production and strategic supply chains — and comes as global economic rivalry with other powers intensifies.