Japanese Media: US and Japan to Draft $550 Billion Investment Agreement Reflecting US Request

Japan Remains Skeptical About Drafting Tariff Agreement
Opposition Parties Call for Written Document to Bridge Perception Gap Between the Two Countries

Japan's private broadcaster JNN reported on August 25 that the United States and Japan have agreed to draft a document regarding Japan's $550 billion (approximately 763 trillion won) investment in the U.S., which was agreed upon during their tariff negotiations.

According to the report, the United States requested that Japan prepare a document, and the Japanese government intends to comply with this request.

Until now, the Japanese government has maintained its position of not drafting a written agreement on tariffs with the United States. However, opposition parties have pointed out that the absence of such a document could lead to ongoing differences in perception between the two countries.

Previously, regarding Japan's investment in the United States, U.S. Secretary of Commerce Howard Lutnick stated, "If the President says, 'Let's produce antibiotics in the United States,' Japan will provide funding, and 90% of the profits will go to American taxpayers, while 10% will go to Japan."

However, the Japanese side countered that their actual equity share is only 1-2% of the total investment and that they would receive dividends only in proportion to this share.

In order to reconcile these differing perspectives, the two countries have reportedly agreed to finalize the specific details of the $550 billion investment plan and establish a joint consultative body to monitor its progress.

Secretary Lutnick also mentioned in an interview with U.S. media on August 19 (local time) that it would "take several weeks" to organize the details of the agreement with Japan.